I 112th CONGRESS 2d Session H. R. 5891 IN THE HOUSE OF REPRESENTATIVES June 5, 2012 Mr. Cummings introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Defense Base Act to require the provision of insurance under that Act under a Government self-insurance program, and to require an implementation strategy for such self-insurance program.

1.

Short title

This Act may be cited as the Defense Base Act Insurance Improvement Act of 2012.

2.

Requirement for use of Government self-insurance program for insurance under Defense Base Act

Section 1 of the Defense Base Act (42 U.S.C. 1651) is amended by adding at the end the following new subsection: (g)

Transition to Government self-Insurance program

(1)

In general

On the effective date of this subsection, the requirements in paragraphs (1) through (6) of subsection (a) imposed on contractors to secure the payment of compensation and other benefits under the provisions of this Act and to maintain in full force and effect such security for the payment of such compensation and benefits shall, for injuries sustained after such effective date, be satisfied through the Government Defense Base Act self-insurance program. (2)

Government Defense Base Act self-insurance program defined

In this subsection, the term Government Defense Base Act self-insurance program means a self-insurance program developed in the implementation strategy required by section 3 of the Defense Base Act Insurance Improvement Act of 2012 and under which— (A)compensation and benefits for injuries sustained are satisfied directly by the Government, without action of the contractor (or subcontractor or subordinate contractor with respect to such contractor); and (B)compensation and benefits are funded by the agencies whose contracts are affected. (3)

Effective date

The effective date of this subsection is the date occurring one year after the date of the enactment of the Defense Base Act Insurance Improvement Act of 2012. .

3.

Implementation strategy for Government Defense Base Act self-insurance program

(a)

Requirement

The Secretary of Defense and the Secretary of Labor shall jointly develop and execute an implementation strategy for a self-insurance program for insurance required by the Defense Base Act (42 U.S.C. 1651 et seq.). (b)

Matters covered

The implementation strategy required under subsection (a) shall address and provide a plan for the following: (1)Appropriate administration of the self-insurance program, including appropriate program financing. (2)Appropriate procedures for claims processing, claims adjudication, and benefits delivery, taking into consideration the unique circumstances of insuring overseas contractors. (3)A timeline and strategy to transfer existing claims covered under the Defense Base Act (42 U.S.C. 1651 et seq.) and the War Hazards Compensation Act (42 U.S.C. 1701 et seq.) by private carriers to a Government self-insurance program. (4)Recommendations for any additional statutory revisions necessary to carry out the strategy. (c)

Report and deadline

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense and the Secretary of Labor shall jointly prepare and submit to the appropriate congressional committees a report on the implementation strategy.

4.

Report

(a)

Report requirement

Not later than 2 years after the date of the enactment of this Act, the Secretary of Defense and the Secretary of Labor shall jointly prepare a report on the implementation of this Act and the amendment made by this Act. (b)

Matters covered

The report shall cover, at a minimum, the following with respect to the Government Defense Base Act self-insurance program (as defined in the amendment made by section 2): (1)The cost savings from the use of the self-insurance program. (2)The quality of administration of the self-insurance program. (3)Whether the delivery of benefits to injured employees and their survivors (in the case of death) has improved under the self-insurance program. (4)Recommendations for improvement of the self-insurance program. (5)Such other matters as the Secretaries consider appropriate.

5.

Definition of congressional committees

In this Act, the term appropriate congressional committees means the following: (1)The Committees on Armed Services of the Senate and the House of Representatives. (2)The Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives.