[Congressional Record Volume 143, Number 157 (Sunday, November 9, 1997)]
[Senate]
[Pages S12292-S12293]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE:
  S. 1496. A bill to remove inequities between Congressional and 
contract employees regarding access to health insurance; to the 
Committee on Governmental Affairs.


        THE CONGRESSIONAL CONTRACTOR HEALTH INSURANCE EQUITY ACT

  Mr. DASCHLE. Mr. President, today I am reintroducing legislation to 
provide employees of congressional contractors the same access to 
health coverage as other congressional workers. This bill should have 
passed last year, when I was thwarted in an effort to pass this measure 
as an amendment to the Treasury-Postal Appropriations bill.
  Instead, another 12 months have gone by in which workers in this very 
building lack health insurance while you and I and our staffs have 
access to a wide variety of subsidized health plans.
  In fact, about 1,900 employees of companies that contract with the 
Federal Government do not have employer-sponsored health insurance. 
Efforts to privatize even more services previously performed by Federal 
Government workers will exacerbate this situation.
  Who are these contractors? They include House restaurant and mailroom 
staff, electronics technicians, day care providers, accountants, data 
processors, and construction and maintenance workers.
  They are like you and me and others with whom we work side-by-side in 
the Halls of the Congress, except they don't have the kind of health 
security we take for granted.
  As we devise new ways to extend health coverage to uninsured children 
and workers between jobs, how can we in Congress allow individuals who 
prepare our meals, repair our equipment, maintain our buildings, and 
care for our children go without the same coverage that we provide our 
staff?
  In good conscience, we can't.
  That's why I am introducing a bill that would require firms that 
contract with Congress to offer insurance to their employees. This 
requirement would apply to firms that employ 15 or more workers, and 
that have Federal contracts worth over $75,000.
  These contractors could buy a private health plan, or they could 
select a plan from FEHBP. In either case, they would be required to 
contribute to employees' premiums, just as the Federal Government 
contributes to its workers' coverage.
  This would ensure that everyone working full-time for Congress has 
access to high quality, comprehensive coverage.
  This kind of action is not without precedent.
  Several years ago, concern about high turnover among Senate daycare 
employees led the Senate to give these contract workers FEHBP coverage.
  And Congress has a long history of taking action to guarantee fair 
working conditions for contract workers. For 65 years, the Davis-Bacon 
Act and other similar measures have guaranteed competitive wages to 
Federal contract workers.
  This bill complements those efforts.
  But passing of this measure is not just a humane gesture. It is a 
practical one.
  Health costs for uninsured workers who become ill are simply shifted 
onto others. They are shifted onto public programs like Medicaid; to 
doctors and hospitals in the form of charity care; and into the 
premiums paid by those with access to private coverage.

[[Page S12293]]

  Clearly, we're all paying, one way or another, for those who have no 
insurance. And we're paying more than necessary. The uninsured often 
forgo preventive care and early intervention only to end up in an 
emergency room or hospital bed instead.
  Congress should not tolerate this kind of inefficient cost shifting. 
We should be setting an example for the rest of the Government and the 
private sector.
  Some may say this measure will reduce the cost savings from 
privatization. I believe Congress should contract out services 
performed more efficiently by the private sector. But reducing benefits 
like health coverage to save money is penny wise and pound foolish. And 
even if outsourcing is the wave of the future, Congress should set an 
example by protecting rights and benefits of those caught in the 
transition.
  Cutting costs by cutting benefits may be easy, but it's not 
efficient, and it's not responsible. Congress should not save money by 
denying workers a basic benefit.
  For many years now, Members of Congress have spoken on the floor 
about the need to extend coverage to the uninsured. We all recognize 
there can be no financial security without health security.
  Let's show the country that what is good for Members of Congress and 
their employees is also good for the contractors who serve us.
  I hope my colleagues will join me in support of this bill.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1496

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Congressional Contractor 
     Health Insurance Equity Act''.

     SEC. 2. DEFINITIONS.

       For purposes of this Act:
       (1) Contract.--The term ``contract'' means any contract for 
     items or services or any lease of Government property 
     (including any subcontract of such contract or any sublease 
     of such lease)--
       (A) the consideration with respect to which is greater than 
     $75,000 per year,
       ``(B) with respect to a contract for services, requires at 
     least 1000 hours of services, and
       (B) entered into between any entity or instrumentality of 
     the legislative branch of the Federal Government and any 
     individual or entity employing at least 15 full-time 
     employees.
       (2) Employee.--The term ``employee'' has the meaning given 
     such term under section 3(6) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1002(6)).
       (3) Entity of the legislative branch.--The term ``entity of 
     the legislative branch'' includes the following:
       (A) The House of Representatives.
       (B) The Senate.
       (C) The Capitol Guide Service.
       (D) The Capitol Police.
       (E) The Congressional Budget Office.
       (F) The Office of the Architect of the Capitol.
       (G) The Office of the Attending Physician.
       (H) The Office of Compliance.
       (4) Group health plan.--The term ``group health plan'' 
     means any plan or arrangement which provides, or pays the 
     cost of, health benefits that are actuarially equivalent to 
     the benefits provided under the standard option service 
     benefit plan offered under chapter 89 of title 5, United 
     States Code.
       (5) Instrumentality of the legislative branch.--The term 
     ``instrumentality of the legislative branch'' means the 
     following:
       (A) The General Accounting Office.
       (B) The Government Printing Office.
       (C) The Library of Congress.

     SEC. 3. GENERAL REQUIREMENTS CONCERNING CONTRACTS COVERED 
                   UNDER THIS ACT.

       (a) In General.--Any contract made or entered into by any 
     entity or instrumentality of the legislative branch of the 
     Federal Government shall contain provisions that require 
     that--
       (1) all persons employed by the contractor in the 
     performance of the contract or at the location of the 
     leasehold be offered health insurance coverage under a group 
     health plan; and
       (2) with respect to the premiums for such plan with respect 
     to each employee--
       (A) the contractor pay a percentage equal to the average 
     Government contribution required under section 8906 of title 
     5, United States Code, for health insurance coverage provided 
     under chapter 89 of such title; and
       (B) the employee pay the remainder of such premiums.
       (b) Option To Purchase.--
       (1) In general.--Notwithstanding section 8914 of title 5, 
     United States Code, a contractor to which subsection (a) 
     applies that does not offer health insurance coverage under a 
     group health plan to its employees on the date on which the 
     contract is to take effect, may obtain any health benefits 
     plan offered under chapter 89 of title 5, United States Code, 
     for all persons employed by the contractor in the performance 
     of the contract or at the location of the leasehold. Any 
     contractor that exercises the option to purchase such 
     coverage shall make any Government contributions required for 
     such coverage under section 8906 of title 5, United States 
     Code, with the employee paying the contribution required for 
     such coverage for Federal employees.
       (2) Calculation of amount of premiums.--Subject to 
     paragraph (3)(B), the Director of the Office of Personnel 
     Management shall calculate the amount of premiums for health 
     benefits plans made available to contractor employees under 
     paragraph (1) separately from Federal employees and 
     annuitants enrolled in such plans.
       (3) Review by office of personnel management.--
       (A) Annual review.--The Director of the Office of Personnel 
     Management shall review at the end of each calendar year 
     whether the nonapplication of paragraph (2) would result in 
     higher adverse selection, risk segmentation in, or a 
     substantial increase in premiums for such health benefits 
     plans. Such review shall include a study by the Director of 
     the health care utilization and risks of contractor 
     employees. The Director shall submit a report to the 
     President, the Speaker of the House of Representatives, and 
     the President pro tempore of the Senate which shall contain 
     the results of such review.
       (B) Nonapplication of paragraph (2).--Beginning in the 
     calendar year following a certification by the Director of 
     the Office of Personnel Management under subparagraph (A) 
     that the nonapplication of paragraph (2) will not result in 
     higher adverse selection, risk segmentation in, or a 
     substantial increase in premiums for such health benefits 
     plans, paragraph (2) shall not apply.
       (4) Requirement of opm.--The Director of the Office of 
     Personnel Management shall take such actions as are 
     appropriate to enable a contractor described in paragraph (1) 
     to obtain the health insurance described in such paragraph.
       (c) Administrative Functions.--
       (1) In general.--The office within the entity or 
     instrumentality of the legislative branch of the Federal 
     Government which administers the health benefits plans for 
     Federal employees of such entity or instrumentality shall 
     perform such tasks with respect to plan coverage purchased 
     under subsection (b) by contractors with contracts with such 
     entity or instrumentality.
       (2) Waiver authority.--Waiver of the requirements of this 
     Act may be made by such office upon application.

     SEC. 4. EFFECTIVE DATE.

       (a) In General.--This Act shall apply with respect to 
     contracts executed, modified, or renewed on or after January 
     1, 1998.
       (b) Termination.--
       (1) In general.--This Act shall not apply on and after 
     October 1, 2002.
       (2) Transition rule.--In the case of any contract under 
     which, pursuant to this Act, health insurance coverage is 
     provided for calendar year 2002, the contractor and the 
     employees shall, notwithstanding section 3(a)(2), pay 1\1/3\ 
     of the otherwise required monthly premium for such coverage 
     in monthly installments during the period beginning on 
     January 1, 2002, and ending before October 1, 2002.
                                 ______