PUBLIC LAW 107-210—AUG. 6, 2002 116 STAT. 957 "(i) in the case of an eligible TAA recipient, the allowance described in subsection (c)(2), "(ii) in the case of an eligible alternative TAA recipient, the benefit described in subsection (c)(3)(B), or "(iii) in the case of any eligible PBGC pension recipient, the benefit described in subsection (c)(4)(B). For purposes of this subparagraph, the term 'individual health insurance' means any insurance which constitutes medical care offered to individuals other than in connection with a group health plan and does not include Federalor State-based health insurance coverage. " (2) REQUIREMENTS FOR STATE-BASED COVERAGE.— "(A) IN GENERAL.—The term 'quahfied health insurance' does not include any coverage described in subparagraphs (B) through (H) of paragraph (1) unless the State involved has elected to have such coverage treated as qualified health insurance under this section and such coverage meets the following requirements: "(i) GUARANTEED ISSUE. —Each qualifying individual is guaranteed enrollment if the individual pays the premium for enrollment or provides a qualified health insurance costs credit eligibility certificate described in section 7527 and pays the remainder of such premium. "(ii) No IMPOSITION OF PREEXISTING CONDITION EXCLUSION.—No pre-existing condition limitations are imposed with respect to any qualifying individual. "(iii) NONDISCRIMINATORY PREMIUM. —The total premium (as determined without regard to any subsidies) with respect to a qualifying individual may not be greater than the total premium (as so determined) for a similarly situated individual who is not a qualifying individual. "(iv) SAME BENEFITS.—Benefits under the coverage are the same as (or substantially similar to) the benefits provided to similarly situated individuals who are not qualifying individuals. "(B) QUALIFYING INDIVIDUAL. —For purposes of this paragraph, the term 'qualifying individual' means— "(i) an eligible individual for whom, as of the date on which the individual seeks to enroll in the coverage described in subparagraphs (B) through (H) of paragraph (1), the aggregate of the periods of creditable coverage (as defined in section 9801(c)) is 3 months or longer and who, with respect to any month, meets the requirements of clauses (iii) and (iv) of subsection (b)(1)(A); and "(ii) the qualifying family members of such eligible individual. "(3) EXCEPTION.— The term 'qualified health insurance' shall not include— "(A) a flexible spending or similar arrangement, and "(B) any insurance if substantially all of its coverage is of excepted benefits described in section 9832(c).