Federal Health Care Expansion Act of 1994

TABLE OF CONTENTS:

Title I: Small Business Participation in Federal

Employees Health Benefits Plans

Title II: Better Access to Affordable Health Care

Subtitle A: Improvements in Health Insurance

Affordability for Small Employers

Subtitle B: Improvements in Health Insurance for

Small Employers

Subtitle C: Improvements in Portability of Private

Health Insurance

Subtitle D: Health Care Cost Containment

Title III: Health Insurance Costs for Self-Employed

Federal Health Care Expansion Act of 1994 - Title I: Small Business Participation in Federal Employees Health Benefits Plans - Amends Federal civil service law to require the Office of Personnel Management (OPM) to promulgate regulations applying the Federal Employees Health Benefits Program (FEHBP) to self-employed individuals and businesses employing 100 or fewer employees, allowing required enrollee and Government contributions to be made by the State or small businesses involved or subsidized by the Secretary of Health and Human Services in any amount, or else be made in full by the self-employed or small business enrollee.

(Sec. 102) Extends continued coverage under FEHBP.

(Sec. 103) Requires carriers under FEHBP and the small business health insurance program above to submit periodic reports to OPM comparing costs between the programs.

(Sec. 104) Requires OPM to study and report to the Congress on risk adjustment in the administration of such programs.

(Sec. 105) Directs the Secretary to phase-out Medicare and Medicaid disproportionate share hospital payments to finance: (1) the grants to States for small employer health insurance group purchasing programs under title II of this Act; (2) the increase in the self-employed tax deduction for health insurance costs under title III of this Act; and (3) the premium subsidy under the small business health insurance program for low-income workers.

(Sec. 106) Directs the Secretary to study and report to the Congress on nonworker and noncovered employee buy-ins for FEHBP coverage.

Title II: Better Access to Affordable Health Care - Subtitle A: Improvements in Health Insurance Affordability for Small Employers - Directs the Secretary to make grants to States for small employer health insurance group purchasing programs. Authorizes appropriations.

Subtitle B: Improvements in Health Insurance for Small Employers - Amends the Social Security Act to direct the Secretary to request the National Association of Insurance Commissioners (NAIC), or in their absence the Secretary, to develop specific standards to incorporate specified requirements for health insurance plans for small employers relating to: (1) guaranteed eligibility, availability, and renewability; (2) coverage based on an individual's health status or medical history; (3) restrictions on rating practices; and (4) benefit package offerings.

(Sec. 221) Amends the Internal Revenue Code to impose an excise tax of 25 percent of gross premiums on the issuer of any health insurance plan to a small employer if the plan does not meet such requirements.

(Sec. 231) Directs the Comptroller General to study and report to the Congress on rating requirements and benefit packages for small group health insurance.

Subtitle C: Improvements in Portability of Private Health Insurance - Imposes an excise tax of $100 per day, with respect to a covered individual, on a group health plan for its failure to provide coverage for a preexisting condition, subject to stated exceptions.

Subtitle D: Health Care Cost Containment - Requires the Secretary to establish a process for certifying managed care plans and utilization review programs. Sets forth certification requirements.

Title III: Health Insurance Costs for Self-Employed - Amends the Internal Revenue Code to: (1) allow self-employed individuals to fully deduct their health insurance premiums; and (2) make such deduction permanent.