To provide for the development of model State laws providing reinsurance mechanisms for high-risk individuals and small employers.

Directs the Secretary of Health and Human Services to request the National Association of Insurance Commissioners to develop model State laws that provide for reinsurance mechanisms for small employers (and individuals) who are covered under a small employer health insurance plan (or an individual health insurance plan) and for whom the insurer is at a high risk of incurring high costs.

Sets forth requirements for a model State law.