DEMONSTRATION PROJECT ON HEALTH INSURANCE FOR MEDICALLY UNINSURABLE CHILDREN.

SEC. 6508. DEMONSTRATION PROJECT ON HEALTH INSURANCE FOR MEDICALLY UNINSURABLE CHILDREN. (a) In General.—The Secretary of Health and Human Services (in this section referred to as the “Secretary”) may conduct not more than 4 demonstration projects to provide health insurance coverage (as defined by the Secretary) through an eligible plan (as defined in subsection (b)) to medically uninsurable children (as defined by the Secretary) under 19 years of age. (b) Eligibility.—In this section, the term “eligible plan” means— (1) a school-based plan; (2) a plan operated under the direction of a not-for-profit entity offering health insurance; and (3) a plan operated by a not-for-profit hospital. (c) Requirements.—A demonstration project conducted under subsection (a) may only be conducted under an agreement between the Secretary and an eligible plan which provides that— (1) health insurance coverage will be made available under the project for at least 2 years, and, if the eligible plan fails to provide such coverage during such period, the Secretary will guarantee the provision of such coverage; (2) non-Federal funds will be made available to fund the project at a level not less than— (A) 50 percent in the first year of such agreement, (B) 65 percent in the second year of such agreement, and (C) 80 percent in the third or subsequent year of such agreement; (3) the plan may not— (A) restrict health insurance coverage on the basis of a child’s medical condition, or (B) impose waiting periods or exclusions for preexisting conditions; (4) any premium imposed under the project shall be disclosed in advance of enrollment and shall be varied by the income of individuals; and (5) with respect to a plan which at the time of entering into such agreement is conducting a project similar to the one described in this subsection such plan must maintain its current level of non-Federal funding at its current level unless such level is less than the applicable level described in paragraph (2). (d) Application.—No funds may be made available by the Secretary under this section unless an application therefor has been submitted to, and approved by, the Secretary. Such application shall be in such form, be submitted in such manner, and contain and be accompanied by such information, as the Secretary may specify. No such application may be approved unless it contains assurances that the applicant will use the funds provided only for the purposes specified in the approved application and will establish such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement and accounting of Federal funds paid to the applicant under this section. (e) Evaluation and Report.— (1) Evaluation.—The Secretary shall provide for an evaluation of the effects of the demonstration projects conducted under subsection (a) on— 103 STAT. 2284 (A) access to health services by previously medically uninsurable children, (B) the availability of insurance coverage to participating medically uninsurable children, (C) the demographic characteristics and health status of participating medically uninsurable children and their families, and (D) out-of-pocket health care costs for such families. (2) Report.—The Secretary shall submit a report on the demonstration projects conducted under subsection (a) to the Committee on Energy and Commerce of the House of Representatives and the Committee on Finance of the Senate, and shall include in such report a summary of the evaluation described in paragraph (1). (f) Authorization of Appropriations.—There are authorized to be appropriated to carry out this section $5,000,000, for each of fiscal years 1991, 1992, and 1993.