Page:United States Statutes at Large Volume 103 Part 3.djvu/215

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PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2283 SEC. 6508. DEMONSTRATION PROJECT ON HEALTH INSURANCE FOR MEDL 42 USC 701 note. CALLY 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 Sec- retary 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 speciHed 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 evalua- tion of the effects of the demonstration projects conducted under subsection (a) on—