To extend Federal funding for operation of State high risk health insurance pools, and for other purposes.

July 14, 2005

Mr. FORD introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To extend Federal funding for operation of State high risk health insurance pools, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `State High Risk Pool Funding Extension Act of 2005'.

SEC. 2. EXTENSION OF FUNDING FOR OPERATION OF STATE HIGH RISK HEALTH INSURANCE POOLS.

(a) Extension of Seed Grants- Section 2745 of the Public Health Service Act (42 U.S.C. 300gg-45) is amended--

(1) in subsection (a), in the subsection heading by inserting `Extension Of' before `Seed'; and

(2) in subsection (c)(1), by inserting `and $15,000,000 for the period of fiscal years 2005 and 2006' after `$20,000,000 for fiscal year 2003'.

(b) Funds for Operations- Section 2745 of the Public Health Service Act (42 U.S.C. 300gg-45) is amended--

(1) in subsection (b)--

(A) in the subsection heading by striking `Matching'; and

(B) by striking paragraph (2) and inserting the following:

`(2) ALLOTMENT- The amounts appropriated under subsection (c)(2) for a fiscal year shall be made available to the States (or the entities that operate the high risk pool under applicable State law) as follows:

`(A) An amount equal to 50 percent of the appropriated amount for the fiscal year shall be allocated in equal amounts among each eligible State that applies for assistance under this subsection.

`(B) An amount equal to 25 percent of the appropriated amount for the fiscal year shall be allocated among the States so that the amount provided to a State bears the same ratio to such available amount as the number of uninsured individuals in the State bears to the total number of uninsured individuals in all States (as determined by the Secretary).

`(C) An amount equal to 25 percent of the appropriated amount for the fiscal year shall be allocated among the States so that the amount provided to a State bears the same ratio to such available amount as the number of individuals enrolled in health care coverage through the qualified high risk pool of the State bears to the total number of individuals so enrolled through qualified high risk pools in all States (as determined by the Secretary).'; and

(2) in subsection (c)(2), by striking `$40,000,000' and all that follows through the period and inserting `$75,000,000 for each of fiscal years 2005 through 2009 to make allotments under subsection (b)(2).'.

(c) Definitions- Section 2745 of the Public Health Service Act (42 U.S.C. 300gg-45) is amended--

(1) in subsection (d), by inserting after `2744(c)(2)' the following: `, except that with respect to subparagraph (A) of such section a State may elect to provide for the enrollment of eligible individuals through an acceptable alternative mechanism,'; and

(2) by adding at the end the following:

`(e) Standard Risk Rate- In subsection (b)(1)(A), the term `standard risk rate' means a rate--

`(1) determined under the State high risk pool by considering the premium rates charged by other health insurers offering health insurance coverage to individuals in the insurance market served;

`(2) that is established using reasonable actuarial techniques; and

`(3) that reflects anticipated claims experience and expenses for the coverage involved.'.

SEC. 3. IOM STUDY OF DEVELOPING STANDARD MODEL FOR CERTIFICATION OF UNINSURABILITY.

(a) In General- The Secretary of Health and Human Services shall enter into a contract with the Institute of Medicine for a study on the development of a standard model for the certification, for purposes of State high risk health insurance pools, of individuals as being uninsurable and thereby eligible for health benefits coverage through such a pool.

(b) Report- Under such contract, the Institute of Medicine shall submit a report on the study to the Secretary and to the Congress.

SEC. 4. INCREASE IN TRADE ADJUSTMENT ASSISTANCE REFUNDABLE TAX CREDIT.

(a) In General- Sections 35(a) and 7527(b) of the Internal Revenue Code of 1986 are each amended by striking `65 percent' and inserting `80 percent'.

(b) Effective Date- The amendments made by subsection (a) shall apply with respect to taxable years beginning after December 31, 2004.

END