Page:United States Statutes at Large Volume 120.djvu/216

 PUBLIC LAW 109–172—FEB. 10, 2006

120 STAT. 185

Public Law 109–172 109th Congress An Act To amend the Public Health Service Act to extend funding for the operation of State high risk health insurance pools.

Feb. 10, 2006 [H.R. 4519]

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 2006’’.

State High Risk Pool Funding Extension Act of 2006. 42 USC 201 note.

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

Section 2745 of the Public Health Service Act (42 U.S.C. 300gg– 45) is amended to read as follows: ‘‘SEC. 2745. RELIEF FOR HIGH RISK POOLS.

‘‘(a) SEED GRANTS TO STATES.—The Secretary shall provide from the funds appropriated under subsection (d)(1)(A) a grant of up to $1,000,000 to each State that has not created a qualified high risk pool as of the date of enactment of the State High Risk Pool Funding Extension Act of 2006 for the State’s costs of creation and initial operation of such a pool. ‘‘(b) GRANTS FOR OPERATIONAL LOSSES.— ‘‘(1) IN GENERAL.—In the case of a State that has established a qualified high risk pool that— ‘‘(A) restricts premiums charged under the pool to no more than 200 percent of the premium for applicable standard risk rates; ‘‘(B) offers a choice of two or more coverage options through the pool; and ‘‘(C) has in effect a mechanism reasonably designed to ensure continued funding of losses incurred by the State in connection with operation of the pool after the end of the last fiscal year for which a grant is provided under this paragraph; the Secretary shall provide, from the funds appropriated under paragraphs (1)(B)(i) and (2)(A) of subsection (d) and allotted to the State under paragraph (2), a grant for the losses incurred by the State in connection with the operation of the pool. ‘‘(2) ALLOTMENT.—Subject to paragraph (4), the amounts appropriated under paragraphs (1)(B)(i) and (2)(A) of subsection (d) for a fiscal year shall be allotted and made available to the States (or the entities that operate the high risk pool under applicable State law) that qualify for a grant under paragraph (1) as follows:

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