Title VI, SEC. 6121. EMPLOYER PREMIUM PAYMENT REQUIRED. (a) Requirement. (1) In general. Each regional alliance employer described in paragraph (2) for a month shall pay to the regional alliance that provides health coverage to a qualifying employee of the employer an employer premium in a amount at least equal to the amount specified in subsection (b). Such payments shall be made in accordance with section 1345. (2) Employer described. An employer described in this paragraph for a month, is an employer that in the month employs one or more qualifying employees (as defined in section 1902(b)(1)). (3) Treatment of certain employment by corporate alliance employers. A corporate alliance employer shall be deemed, for purposes of this subpart, to be a regional alliance employer with respect to qualifying employees who are not corporate alliance eligible individuals. (b) Premium Payment Amount. (1) In general. Except as provided in section 6123 (relating to a discount for certain employers), section 6124 (relating to large employers electing coverage in a regional alliance), and section 6125 (relating to the employer collection shortfall add-on), the amount of the employer premium payment, for a month for qualifying employees of the employer who reside in an alliance area, is the sum of the payment amounts computed under paragraph (2) for each class of family enrollment with respect to such employees in such area. (2) Payment amount for all employees in a class of family enrollment. Subject to paragraph (3), the payment amount under this paragraph, for an employer for a class of family enrollment for a month for qualifying employees residing in an alliance area, is the product of (A) the base employer monthly premium determined under section 6122 for the class of family enrollment for the previous month for the regional alliance, and (B) the number of full-time equivalent employees (determined under section 1901(b)(2)) enrolled in that class of family enrollment for the previous month and residing in the alliance area. (3) Treatment of certain employees. In applying this subpart in the case of a qualifying employee (other than a medicare-eligible individual) who is not enrolled in any alliance health plan (A) the employee is deemed enrolled in a regional alliance health plan (for the alliance area in which the individual resides) in the dual parent class of enrollment, and (B) if the employee's residence is not known, the employee is deemed to reside in the alliance area in which the employee principally is employed for the employer. (4) Transitional rules for first month in first year for a State. In the case of an employer for a State in the first month of the State's first year (A) the premium amount for such month shall be computed by substituting ``month'' for ``previous month'' in paragraph (2); (B) payment for such month shall be made on the first of the month based on an estimate of the payment for such month; (C) an adjustment shall be made to the payment in the following month to reflect the difference between the payment in the first month and the payment in the following month (calculated without regard to the adjustment under this subparagraph); and (D) the reconciliation of premiums for such first month under section 1602(c) shall be included in the reconciliation of premiums for the following 12 months. (5) Special rules for divided families. In the case of an individual who is a qualifying employee of an employer and the individual has a spouse or child who is not treated as part of the individual's family because of section 1012 (A) the employer premium payment under this section shall be computed as though such section had not applied, and (B) the regional alliance shall make proportional payments (consistent with rules established by the Secretary) to the health plans (if different) of the qualifying employee and of the employee's spouse and children. (c) Application During Transition Period. (1) In general. For purposes of applying this subpart in the case of an employer described in paragraph (3), there shall only be taken into account qualifying employees (and wages of such employees) who reside in a participating State. (2) Exception. Paragraph (1) shall not apply in determining the average number of full-time equivalent employees or whether an employer is a small employer. (3) Employer described. An employer described in this paragraph is an employer that employs one or more qualifying employees in a participating State and one or more qualifying employees in a State that is not a participating State.