
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC4317]

 
                      TITLE 38--VETERANS' BENEFITS
 
               PART III--READJUSTMENT AND RELATED BENEFITS
 
    CHAPTER 43--EMPLOYMENT AND REEMPLOYMENT RIGHTS OF MEMBERS OF THE 
                           UNIFORMED SERVICES
 
   SUBCHAPTER II--EMPLOYMENT AND REEMPLOYMENT RIGHTS AND LIMITATIONS; 
                              PROHIBITIONS
 
Sec. 4317. Health plans

    (a)(1) In any case in which a person (or the person's dependents) 
has coverage under a health plan in connection with the person's 
position of employment, including a group health plan (as defined in 
section 607(1) of the Employee Retirement Income Security Act of 1974), 
and such person is absent from such position of employment by reason of 
service in the uniformed services, the plan shall provide that the 
person may elect to continue such coverage as provided in this 
subsection. The maximum period of coverage of a person and the person's 
dependents under such an election shall be the lesser of--
        (A) the 18-month period beginning on the date on which the 
    person's absence begins; or
        (B) the day after the date on which the person fails to apply 
    for or return to a position of employment, as determined under 
    section 4312(e).

    (2) A person who elects to continue health-plan coverage under this 
paragraph may be required to pay not more than 102 percent of the full 
premium under the plan (determined in the same manner as the applicable 
premium under section 4980B(f)(4) of the Internal Revenue Code of 1986) 
associated with such coverage for the employer's other employees, except 
that in the case of a person who performs service in the uniformed 
services for less than 31 days, such person may not be required to pay 
more than the employee share, if any, for such coverage.
    (3) In the case of a health plan that is a multiemployer plan, as 
defined in section 3(37) of the Employee Retirement Income Security Act 
of 1974, any liability under the plan for employer contributions and 
benefits arising under this paragraph shall be allocated--
        (A) by the plan in such manner as the plan sponsor shall 
    provide; or
        (B) if the sponsor does not provide--
            (i) to the last employer employing the person before the 
        period served by the person in the uniformed services, or
            (ii) if such last employer is no longer functional, to the 
        plan.

    (b)(1) Except as provided in paragraph (2), in the case of a person 
whose coverage under a health plan was terminated by reason of service 
in the uniformed services, an exclusion or waiting period may not be 
imposed in connection with the reinstatement of such coverage upon 
reemployment under this chapter if an exclusion or waiting period would 
not have been imposed under a health plan had coverage of such person by 
such plan not been terminated as a result of such service. This 
paragraph applies to the person who is reemployed and to any individual 
who is covered by such plan by reason of the reinstatement of the 
coverage of such person.
    (2) Paragraph (1) shall not apply to the coverage of any illness or 
injury determined by the Secretary of Veterans Affairs to have been 
incurred in, or aggravated during, performance of service in the 
uniformed services.

(Added Pub. L. 103-353, Sec. 2(a), Oct. 13, 1994, 108 Stat. 3161; 
amended Pub. L. 104-275, title III, Sec. 311(7), Oct. 9, 1996, 110 Stat. 
3335.)

                       References in Text

    Sections 3(37) and 607(1) of the Employee Retirement Income Security 
Act of 1974, referred to in subsec. (a)(1), (3), are classified to 
sections 1002(37) and 1167(1), respectively, of Title 29, Labor.
    Section 4980B(f)(4) of the Internal Revenue Code of 1986, referred 
to in subsec. (a)(2), is classified to section 4980B(f)(4) of Title 26, 
Internal Revenue Code.


                            Prior Provisions

    A prior section 4317 was renumbered section 7617 of this title.


                               Amendments

    1996--Subsec. (a). Pub. L. 104-275 substituted ``(a)(1) In'' for 
``(a)(1)(A) Subject to paragraphs (2) and (3), in'', redesignated cls. 
(i) and (ii) of par. (1) as subpars. (A) and (B), respectively, 
redesignated former subpars. (B) and (C) as pars. (2) and (3), 
respectively, and in par. (3), redesignated cls. (i) and (ii) as 
subpars. (A) and (B), respectively, and subcls. (I) and (II) as cls. (i) 
and (ii), respectively.


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-275 effective Oct. 13, 1994, see section 
313 of Pub. L. 104-275, set out as a note under section 4301 of this 
title.


                             Effective Date

    Section effective with respect to reemployments initiated on or 
after the first day after the 60-day period beginning Oct. 13, 1994, 
with transition rules, except that a person on active duty on Oct. 13, 
1994, or a family member or personal representative of such person, may, 
after Oct. 13, 1994, elect to reinstate or continue a health plan 
provided in this section, and the health plan shall remain in effect for 
the remaining portion of the 18-month period that began on the date of 
such person's separation from civilian employment or the period of the 
person's service in the uniformed service, whichever is of lesser 
duration, see section 8 of Pub. L. 103-353, set out as a note under 
section 4301 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 4316, 4319 of this title; 
title 2 section 1316; title 3 section 416.
