CONTINUED HEALTH INSURANCE COVERAGE.

SEC. 1106. CONTINUED HEALTH INSURANCE COVERAGE. Section 8905a(d) of title 5, United States Code, is amended— (1) in paragraph (1)(A), by striking “paragraph (4)” and inserting “paragraphs (4) and (5)”; (2) in paragraph (2), by striking “(1) or (4)” and inserting “(1), (4), or (5)”; and (3) by adding at the end the following new paragraph: “(5)(A) If the basis for continued coverage under this section is an involuntary separation from a position in or under the Department of Veterans Affairs due to a reduction in force or a title 38 staffing readjustment— “(i) the individual shall be liable for not more than the employee contributions referred to in paragraph (1)(A)(i); and “(ii) the agency which last employed the individual shall pay the remaining portion of the amount required under paragraph (1)(A). “(B) This paragraph shall only apply with respect to individuals whose continued coverage is based on a separation occurring on or after the date of the enactment of this paragraph.”.