[Congressional Bills 118th Congress] [From the U.S. Government Publishing Office] [S. 4817 Introduced in Senate (IS)] <DOC> 118th CONGRESS 2d Session S. 4817 To amend title I of the Patient Protection and Affordable Care Act to authorize the establishment of, and provide support for, State-based universal health care systems that provide comprehensive health benefits to State residents, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES July 25, 2024 Mr. Markey (for himself, Ms. Warren, and Mr. Merkley) introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend title I of the Patient Protection and Affordable Care Act to authorize the establishment of, and provide support for, State-based universal health care systems that provide comprehensive health benefits to State residents, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; PURPOSE. (a) Short Title.--This Act may be cited as the ``State-Based Universal Health Care Act of 2024''. (b) Purpose.--The purpose of this Act is to establish a flexible framework under which States can provide comprehensive universal health coverage to their residents. SEC. 2. WAIVER FOR STATE UNIVERSAL HEALTH CARE. (a) In General.--Part 4 of subtitle D of title I of the Patient Protection and Affordable Care Act (42 U.S.C. 18021 et seq.) is amended by adding at the end the following: ``SEC. 1335. WAIVER FOR STATE UNIVERSAL HEALTH CARE. ``(a) Application.-- ``(1) In general.--Subject to paragraph (6), a State may apply to the Secretary (as defined in subsection (i)(3)) for the waiver of so much of the requirements described in paragraph (2) with respect to health benefits coverage within the State for plan years beginning on or after January 1, 2025, as is necessary to implement a comprehensive State universal health care plan in the State under this section. Such application shall-- ``(A) be filed at such time and in such manner as the Secretary may require; ``(B) contain such information as the Secretary may require, including-- ``(i) a comprehensive description of the State legislation, or other State legal authority as applicable, and program to implement a plan meeting the requirements for a waiver under this section; ``(ii) a plan for how the State will achieve in 5 years health coverage for at least 95 percent of residents of the State; and ``(iii) a 10-fiscal-year budget plan for such plan that is budget neutral for the Federal Government; and ``(C) provide an assurance that the State has legal authority to implement such plan or has enacted the law described in subsection (b)(2). ``(2) Requirements.--The requirements described in this paragraph with respect to health benefits coverage within the State for plan years beginning on or after January 1, 2025, are as follows: ``(A) Sections 1301 through 1324. ``(B) Section 1402. ``(C) Sections 36B and 4980H of the Internal Revenue Code of 1986. ``(D) Title XI of the Social Security Act. ``(E) Title XVIII of the Social Security Act. ``(F) Title XIX of the Social Security Act. ``(G) Title XXI of the Social Security Act. ``(H) Chapter 89 of title 5, United States Code. ``(I) Chapter 55 of title 10, United States Code, including coverage under the TRICARE program. ``(J) Section 514 of the Employee Retirement Income Security Act of 1974. ``(3) Passthrough of funding.--With respect to a State waiver under paragraph (1), under which the State assumes responsibility for health coverage under one or more of the specified Federal health programs, including under each of the Federal health care or subsidy programs specified in subparagraphs (A), (B), (C), (E), (F), (G), (H), and (I) of paragraph (2), the Secretary shall not spend Federal health or related administrative funds that would otherwise have been spent for such a program, as applicable, for the time periods covered under the waiver and shall provide for an alternative means by which the aggregate amount of such funds (determined by the Secretary in coordination with the State), including caseload growth, adjusted for inflation in health care costs within the State, shall be paid to the State for purposes of implementing the State plan under the waiver. Any savings in health care spending, including administrative savings, shall be available to the State for reinvestment in health care services under the State plan. Such amount shall be determined annually by the Secretary, taking into account the amount that would otherwise have been spent under each such Federal health program, including for administrative activities and caseload growth, with respect to residents of such State, for those time periods covered under the waiver, adjusted for inflation in health care costs, if such waiver did not apply. Such amount shall include funds equal to the aggregate amount of premium tax credits, cost-sharing reductions, or small-business credits, to the extent applicable to an approved waiver, under sections 36B and 45R of the Internal Revenue Code of 1986 or under section 1402 that would have been available to individuals and businesses in the State for those time periods covered under the waiver, including caseload growth, adjusted for inflation in health care costs, if such waiver did not apply. ``(4) Waiver consideration and transparency.-- ``(A) In general.--An application for a waiver under this section shall be considered by the Secretary, after taking into account recommendations of the Panel under subsection (g), in accordance with the regulations described in subparagraph (B). ``(B) Regulations.--Not later than 180 days after the date of the enactment of the State-Based Universal Health Care Act of 2024, the Secretary shall promulgate regulations relating to waivers under this section that provide-- ``(i) a process for public notice and comment in accordance with the public notice and comment requirements applicable under regulations used for Medicaid waivers pursuant to section 1115 of the Social Security Act; ``(ii) a process for the submission of an application that ensures the disclosure of-- ``(I) the provisions of law that the State involved seeks to waive; and ``(II) the specific plans of the State to ensure that the waiver will be in compliance with subsection (b); ``(iii) a process for providing public notice and comment after the application is received by the Secretary that is sufficient to ensure a meaningful level of public input and that does not impose requirements that are in addition to, or duplicative of, requirements imposed under chapter 5 of title 5, United States Code (commonly referred to as the Administrative Procedure Act), or requirements that are unreasonable or unnecessarily burdensome with respect to State compliance; ``(iv) a process for the submission to the Secretary of periodic reports by the State concerning the implementation of the program under the waiver; ``(v) a process for the periodic evaluation by the Secretary with respect to waivers granted under this section; and ``(vi) a process for providing technical assistance on-- ``(I) how to develop an application to any State seeking to submit an application for a waiver relating to developing a program of providing health care for all residents for such State; and ``(II) how to improve such a program for purposes of a State seeking assistance pursuant to subsection (e)(2). ``(C) Report.--The Secretary shall annually report to Congress concerning actions taken by the Secretary with respect to applications for waivers under this section and programs conducted pursuant to such waivers that are approved. ``(5) Regional waiver request and plan.--Nothing in this section shall be construed to prevent 2 or more States in a region from submitting a single application under this section for a waiver that establishes a plan that is applicable to all of the States included in such application. In the case of such an application and plan, the requirements of this section shall continue to be applicable with respect to each State included in such application. ``(6) Coordination with 1332 waivers.--A State may not apply for a waiver under this section with respect to a plan year if such State has in effect, with respect to such plan year, a waiver under section 1332. ``(7) Authorization of appropriations.--There is authorized to be appropriated such sums as may be necessary for providing funds to States with a waiver under this section for purposes of carrying out activities described in subsection (b)(1)(E). ``(b) Granting of Waivers.-- ``(1) In general.--The Secretary shall grant a request for a waiver under subsection (a)(1) if the Secretary determines that the State plan-- ``(A) will provide, in accordance with subparagraph (B), health benefits coverage to applicable State residents that is at least as comprehensive as the health benefits coverage that such residents would have received under one or more of the specified Federal health programs (as defined in subsection (i)(4)), as applicable, for which such residents would have been eligible, absent such waiver; ``(B) will provide, in the case of such a waiver under subsection (a)(1) for the State to waive any of the requirements described in subsection (a)(2)(F), as applicable, health benefits coverage to applicable State residents who would have otherwise received health benefits coverage in the form of medical assistance under the State Federal health program described in subsection (i)(4)(B) (regardless of whether the State provides for such assistance through a State Medicaid plan under title XIX of the Social Security Act or a waiver of such State Medicaid plan) that includes at least the mandatory benefits under title XIX of the Social Security Act that are required of a State without a waiver of a State Medicaid plan under such title, including benefits for early and periodic screening, diagnostic, and treatment, benefits for non-emergency transportation, and retroactive coverage; ``(C) will provide coverage and cost-sharing protections against excessive out-of-pocket spending to State residents that are at least as affordable as the coverage and cost-sharing protections under the specified Federal health program (as defined in subsection (i)(4)) for which such residents would have been eligible, absent such waiver; ``(D) will provide coverage to all residents of the State, including those otherwise covered under one or more of the Federal health care or subsidy programs specified in subparagraphs (B), (C), (E), (F), (G), and (H) of subsection (a)(2), except individuals who are eligible for benefits through the Indian Health Service or for benefits and services under title 38, United States Code; ``(E) will provide for public education activities to raise awareness of the availability of such coverage and the facilitation of enrollment in such coverage, and to raise awareness regarding restrictions on the sale of duplicative or supplemental private insurance (and, if the State chooses to continue to offer qualified health plans through an Exchange, public education activities will raise awareness of the availability of and the facilitation of enrollment in such plans in a manner similar to an entity that serves as a navigator under a grant under section 1311(i)); ``(F) will be publicly administered by an agency or multiple agencies of the State, or an independent public entity within the government of the State; ``(G) will not preclude the purchase of insurance that offers coverage for benefits that are not offered under the State plan; ``(H) will provide systems for complaints, appeals, independent review, and other procedures for accessing and maintaining benefits that are at least as accessible to applicable State residents as those of one or more of the specified Federal health programs (as defined in subsection (i)(4)) for which such residents would have otherwise been eligible without application of such waiver under subsection (a)(1); and ``(I) will provide coverage for reproductive health care services, including abortion, contraception, and gender-affirming care. Subparagraph (D) shall not be construed as limiting a State from contracting with one or more private entities to administer the State plan. ``(2) Requirement to enact a law.-- ``(A) In general.--A law described in this paragraph is a State law (including an executive order by a State governor) that provides for State actions under a waiver under this section, including the implementation of the State plan under subsection (a)(1)(B). ``(B) Termination of opt out.--A State may repeal a law described in subparagraph (A) and terminate the authority provided under the waiver with respect to the State. ``(c) Scope of Waiver.-- ``(1) In general.--The Secretary shall determine the scope of a waiver of a requirement described in subsection (a)(2) granted to a State under subsection (a)(1). ``(2) Limitation.--Under this section, the Secretary may not waive any Federal law or requirement that is not listed in subsection (a)(2). ``(d) Determinations by Secretary.-- ``(1) Time for determination.--The Secretary shall, with respect to an application from a State under this section and after taking into account recommendations of the Panel under subsection (g) for such application, make a determination under subsection (a)(1) not later than 90 days after the receipt of such recommendations. ``(2) Effect of determination.-- ``(A) Granting of waivers.--If the Secretary determines to grant a waiver under subsection (a)(1), the Secretary shall notify the State involved of such determination and the terms and effectiveness of such waiver. ``(B) Denial of waiver.--If the Secretary determines a waiver should not be granted under subsection (a)(1), the Secretary shall notify the State involved and the appropriate committees of Congress of such determination and the reasons therefor. ``(e) Required Reports; 5-Year Review.-- ``(1) In general.--As a condition of receipt of a waiver under this section, after each 5-year period of such waiver, a State shall submit to the Secretary a report that is carried out by an independent, non-partisan entity, with respect to such 5-year period and after a process for public notice and comment at the State level, including public hearings, sufficient to ensure a meaningful level of public input, on the following: ``(A) How waiver funds have been spent by the State. ``(B) The number of residents of the State without health insurance and a description of how the State plans to provide health insurance coverage within the subsequent 5 years to residents of the State without health insurance. ``(C) How affordability in the State for health care has changed over the period. ``(D)