PRINTER'S NO. 2955
No. 2246 Session of 2000
INTRODUCED BY MELIO, COY, DeWEESE, HARHAI, FREEMAN, LESCOVITZ,
M. COHEN, STURLA, DeLUCA, GEORGE, TRAVAGLIO, SCRIMENTI,
MUNDY, WASHINGTON, ROBINSON, VAN HORNE, VEON, BELARDI,
SANTONI, WALKO, TIGUE, SOLOBAY, MANN, STABACK, MANDERINO,
GRUCELA, SHANER, BEBKO-JONES, JOSEPHS, YUDICHAK, BATTISTO,
CASORIO, YOUNGBLOOD, PISTELLA, LaGROTTA, TANGRETTI AND
GORDNER, FEBRUARY 9, 2000
REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 9, 2000
AN ACT
1 Providing for a portion of the tobacco litigation settlement
2 agreement funds to be used to provide grants to assist
3 individuals to purchase group health insurance upon
4 employment termination; imposing powers and duties on the
5 Department of Labor and Industry; establishing the Uninsured
6 Interim Coverage Fund; and making an appropriation.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Short title.
10 This act shall be known and may be cited as the Interim
11 Coverage for the Uninsured Act.
12 Section 2. Declaration of policy.
13 The General Assembly finds and declares as follows:
14 (1) Access to and affordability of health care coverage
15 is a crucial concern for unemployed Pennsylvanians.
16 (2) Under the Consolidated Omnibus Budget Reconciliation
17 Act of 1985 (Public Law 99-272, 100 Stat. 82), referred to as
1 COBRA, an employee who is insured under a group health
2 insurance policy through his place of employment has the
3 right, upon termination of employment, to continue coverage
4 under the group policy at the employee's expense.
5 (3) While many Pennsylvanians are entitled to access to
6 health insurance under COBRA, most cannot afford the cost of
7 coverage.
8 (4) Thousands of unemployed Pennsylvanians receive
9 financial support from the unemployment compensation program,
10 and many of these individuals are in great need of assistance
11 payments for health insurance under COBRA.
12 (5) Providing assistance to the unemployed in securing
13 health insurance coverage will reduce the economic burden on
14 these individuals and their families, and will ensure that
15 they receive appropriate care at an appropriate time.
16 Section 3. Definitions.
17 The following words and phrases when used in this act shall
18 have the meanings given to them in this section unless the
19 context clearly indicates otherwise:
20 "COBRA." Title X of the Consolidated Omnibus Budget
21 Reconciliation Act of 1985 (Public Law 99-272, 100 Stat. 82).
22 "COBRA continuation coverage." Coverage under a group health
23 plan provided pursuant to Title XXII of the Public Health
24 Service Act (58 Stat. 682, 42 U.S.C. § 300bb-1 et seq.), section
25 4980B of the Internal Revenue Code of 1986 (Public Law 99-514,
26 26 U.S.C. § 4980B) or Title VI of the Employee Retirement Income
27 Security Act of 1974 (Public Law 93-406, 88 Stat. 829).
28 "Department." The Department of Labor and Industry of the
29 Commonwealth.
30 "Master settlement agreement." The settlement agreement and
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1 related documents entered into on November 23, 1998, by the
2 Commonwealth and leading United States tobacco product
3 manufacturers and approved by the court in Commonwealth v.
4 Philip Morris, April Term 1997, No. 2443 (C.P. Philadelphia
5 County), on January 13, 1999.
6 "Tobacco settlement fund." The fund established in the State
7 Treasury to receive payments to the Commonwealth as provided
8 under the master settlement agreement.
9 "Unemployment compensation." The income support program
10 established by the act of December 5, 1936 (2nd Sp.Sess., 1937
11 P.L.2897, No.1), known as the Unemployment Compensation Law.
12 "Unemployment compensation recipient." An individual
13 receiving unemployment compensation benefits.
14 Section 4. Interim coverage for the uninsured.
15 (a) Payment for health insurance costs.--The department
16 shall pay the health insurance premium for any eligible
17 unemployment compensation recipient who elects to receive this
18 payment.
19 (b) Eligibility.--An unemployment compensation recipient
20 shall be eligible for health insurance premium payments if the
21 recipient:
22 (1) is eligible for COBRA continuation coverage;
23 (2) does not have access to health insurance through
24 another source, such as a family member or another government
25 program; and
26 (3) has, at the time of enrollment in the unemployment
27 compensation program, a projected annual income in relation
28 to family size that does not exceed 300% of the poverty level
29 by family size, as defined by the United States Bureau of the
30 Census and revised annually.
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1 (c) Reduction in unemployment compensation benefits.--The
2 unemployment compensation payments for unemployment compensation
3 recipients who elect to receive health insurance premium
4 payments under this act shall be reduced by 20%. An amount
5 equivalent to the savings realized by this reduction shall be
6 transferred from the Unemployment Compensation Fund or other
7 department unemployment compensation funds to the Uninsured
8 Interim Coverage Fund, which is hereby established as a special
9 nonlapsing fund in the State Treasury.
10 (d) Informing beneficiaries.--The department shall inform
11 all unemployment compensation recipients of the availability of
12 health insurance premium payment assistance, and it shall assist
13 them in determining their eligibility and applying for COBRA
14 continuation coverage.
15 Section 5. Regulations.
16 The department shall administer this act and shall promulgate
17 rules, regulations and standards for its proper enforcement and
18 administration.
19 Section 6. Appropriation.
20 The sum of $65,000,000 is hereby appropriated from the
21 tobacco settlement fund to the Uninsured Interim Coverage Fund
22 for the fiscal year July 1, 2000, to June 30, 2001, to carry out
23 the provisions of this act. This appropriation shall be a
24 continuing appropriation and shall not lapse at the end of the
25 fiscal year.
26 Section 7. Effective date.
27 This act shall take effect July 1, 2000, or immediately,
28 whichever is later.
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