Requires a health insurance issuer to follow the laws of the State of its primary business location (primary State) for a policy: (1) when filed and approved by such State; and (2) even when it is offered in a secondary State (all other States).
Directs the Secretary of Health and Human Services to fund: (1) mechanisms for enforcement, including consumer fraud, and information exchange; and (2) matching grants to States according to a specified formula for the creation of qualified high risk pools.
Amends the Employee Retirement Income Security Act of 1974, the Public Health Service Act, and the Internal Revenue Code to exclude small employer reimbursements to employees for the purchase of health insurance coverage in the individual market from the definition of "group health plan."
Amends the Internal Revenue Code to: (1) provide a refundable credit for specified qualified health coverage costs; (2) establish a program for making advance payments for health care coverage on behalf of eligible individuals; (3) allow full deductibility of health care coverage costs, subject to specified limitations; (4) allow carryover of unused benefits from cafeteria plans or flexible spending arrangements; and (5) treat amounts paid under a flexible spending plan for qualified health coverage as employer-provided coverage.