To amend the Internal Revenue Code of 1986 to require State unemployment insurance laws to establish a system under which workers may purchase insurance to cover the costs of health insurance during periods of unemployment.

Amends the Internal Revenue Code to require State unemployment compensation laws to provide for a program that: (1) allows individuals to purchase health insurance continuation benefits by having premiums deducted by their employer from their wages; (2) offers options as to the availability and level of such benefits; (3) specifies the periodic premium to be deducted for each option and the maximum premium payable for any such option; and (4) uses collected premiums solely for providing such benefits.