Title III, SEC. 3801. PUBLIC HEALTH SERVICE ACT; COORDINATION WITH COBRA CONTINUATION COVERAGE. (a) Period of Coverage. Subparagraph (D) of section 2202(2) of the Public Health Service Act (42 U.S.C. 300bb 2(2)) is amended (1) by striking ``or'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting ``, or'', and by adding at the end the following new clause: ``(iii) eligible for comprehensive health coverage described in section 1101 of the Health Security Act.'', and (2) by striking ``or medicare entitlement'' in the heading and inserting ``, medicare entitlement, or health security act eligibility''. (b) Qualified Beneficiary. Section 2208(3) of such Act (42 U.S.C. 300bb 8(3)) is amended by adding at the end the following new subparagraph: ``(C) Special rule for individuals covered by health security act. The term `qualified beneficiary' shall not include any individual who, upon termination of coverage under a group health plan, is eligible for comprehensive health coverage described in section 1101 of the Health Security Act.''. (c) Repeal Upon Implementation of Health Security Act. (1) In general. Title XXII of such Act (42 U.S.C. 300bb 1 et seq.) is hereby repealed. (2) Conforming amendment. The table of contents of such Act is amended by striking the item relating to title XXII. (3) Effective date. The amendments made by this subsection shall take effect on the earlier of (A) January 1, 1998, or (B) the first day of the first calendar year following the calendar year in which all States have in effect plans under which individuals are eligible for comprehensive health coverage described in section 1101 of this Act.