Bipartisan Health Security Reform Act of 1994

TABLE OF CONTENTS: Title I: Amendments of Internal Revenue Code of 1986 Subtitle A: Tax Incentives for Purchase of Health Care Coverage Subtitle B: Medical Care Savings Accounts Subtitle C: Expansion of COBRA Continuation Coverage Title II: Insurance Reform Subtitle A: Employer Insurance Protections Subtitle B: Guaranteeing Portability of Health Insurance for Individuals Subtitle C: Assuring Health Insurance Coverage for Uninsurable Individuals Title III: Medicaid Reform Title IV: Medical Charge Disclosure Bipartisan Health Security Reform Act of 1994 - Title I: Amendments of Internal Revenue Code of 1986- Subtitle A: Tax Incentives for Purchase of Health Care Coverage - Amends the Internal Revenue Code to allow individuals a refundable credit of 30 percent of the amount paid for: (1) the purchase of health care coverage for the taxpayer, the spouse, and dependents; and (2) contributions to a medical care savings account if the individual is covered under a high deductible health plan or by a health maintenance organization. Repeals the deduction for health insurance costs of self-employed individuals. Subtitle B: Medical Care Savings Accounts - Provides for the establishment of medical care savings accounts. Makes the account beneficiary the owner of the account and includes distributions in the beneficiary's gross income. Sets forth uses and limitations for such accounts. Excludes health benefit payments made by employers from employment taxes. (Sec. 112) Allows the transfer of unused amounts in flexible spending accounts of cafeteria plans to medical savings accounts. Subtitle C: Expansion of COBRA Continuation Coverage - Amends the Internal Revenue Code, the Employee Retirement Income Security Act of 1974, and the Public Health Service Act to make the continuation coverage requirements for group health plans inapplicable to employers of fewer than four employees (currently, 20 employees). Extends the required period of coverage to 36 months (currently, 18 months). Title II: Insurance Reform - Subtitle A: Employer Insurance Protections - Prohibits a health benefit insurer that provides or offers a small group health benefit plan from: (1) cancelling or non-renewing an individual small employer group because of high claims costs or the health of the group; or (2) refusing to provide coverage to such a group based solely on the nature of the employer's business or industry. Places limitations on increases in premium rates and variations in premiums across and within classes of businesses. (Sec. 202) Provides for continued health benefit coverage for individuals who change employers. (Sec. 204) Imposes an excise tax on the failure of an insurer or group health plan to meet the requirements of this title. Makes such tax nondeductible. Subtitle B: Guaranteeing Portability of Health Insurance for Individuals - Provides continued coverage and portability protections for eligible individuals or families applying for an individual health benefit plan. Subtitle C: Assuring Health Insurance Coverage for Uninsurable Individuals - Requires each State, beginning in 1997, to establish, administer, and fund a high-risk health insurance pool that assures the availability of qualified health insurance coverage to uninsurable individuals. Provides funding for such high-risk programs through: (1) premiums, with limitations; (2) surcharges for avoidable health risks, such as smoking; and (3) other means specified under State law. Title III: Medicaid Reform - Amends title XIX (Medicaid) of the Social Security Act to grant States the authority to provide an eligible individual the option to receive medical assistance through enrollment in a private health plan. Title IV: Medical Charge Disclosure - Requires providers of medical services to visibly post maximum charges and costs for services.