Title VI, SEC. 6114. SPECIAL TREATMENT OF CERTAIN RETIREES AND QUALIFIED 
SPOUSES AND CHILDREN. 
      (a) Treatment as Full-Time Employee. 

        (1) In general. Subject to subsection (d) and paragraph (2), an 
      individual who is an eligible retiree (as defined in susection (b)) or a 
      qualified spouse or child (as defined in subsection (c)) for a month in a 
      year (beginning with 2000) is considered, for purposes of section 6112, 
      to be a full-time employee described in such section in such month. 

        (2) Phase-in. For months in 2000, the reduction in liability under 
      section 6111 resulting from paragraph (1) for an individual (or qualified 
      spouse or child) shall be 62.5 percent of the reduction in liability that 
      would apply but for this paragraph. 

      (b) Eligible Retiree Defined. In subsection (a), the term ``eligible 
    retiree'' means, for a month, an individual who establishes to the 
    satisfaction of the regional alliance (for the alliance area in which the 
    individual resides), pursuant to rules of the Secretary, that the 
    individual, as of the first day of the month 

        (1) is at least 55, but less than 65, years of age, 

        (2) is not employed on a full-time basis (as defined in section 
      6121(d)(1)(A)), 

        (3) would be eligible (under section 226(a) of the Social Security Act) 
      for hospital insurance benefits under part A of title XVIII of such Act 
      if the individual were 65 years of age based only on the employment of 
      the individual, and 

        (4) is not a medicare-eligible individual. 

      (c) Qualified Spouse or Child Defined. In subsection (a), the term 
    ``qualified spouse or child'' means, in relation to an eligible retiree for 
    a month, an individual who establishes to the satisfaction of the regional 
    alliance (for the alliance area in which the individual resides) under 
    rules of the Secretary that the requirements in one of the following 
    paragraphs is met with respect to the individual: 

        (1) The individual (A) is under 65 years of age and is (and has been 
      for a period of at least one year) married to an eligible retiree or (B) 
      is a child of the eligible retiree. 

        (2) In the case of a person who was an eligible retiree at the time of 
      the person's death 

          (A) the individual  was (and had for a period of at least one year 
        been) married to the retiree at the time of the person's death, 

          (B) the individual is under 65 years of age, 

          (C) the individual is not employed on a full-time basis (as defined 
        in section 6121(d)(1)(A)), 

          (D) the individual is not remarried, and 

          (E) the deceased spouse would still be an eligible retiree in the 
        month if such spouse had not died. 

        (3) The individual is a child of an individual described in paragraph 
      (2). 

      (d) Individuals Disqualified. Subsection (a) shall not apply to an 
    individual for a month in a year if the individual would be subject to 
    section 59B of the Internal Revenue Code of 1986 as a taxpayer in the year 
    if the individual were covered under Medicare part B for any month during 
    the year. 

      (e) Application. An individual may not be determined to be an eligible 
    retiree or qualified spouse or child unless an application has been filed 
    with the regional alliance. Such application shall contain such information 
    as the Secretary may require to establish such status and verify 
    information in the application. Any material misrepresentation in the 
    application is subject to a penalty in the same manner as a 
    misrepresentation described in section 1374(h)(2).