[Congressional Record Volume 169, Number 133 (Friday, August 4, 2023)]
[Extensions of Remarks]
[Page E754]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    APPLICABILITY OF THE AIRLINE DEREGULATION ACT TO STATE WORKERS' 
                         COMPENSATION PROGRAMS

                                 ______
                                 

                           HON. LANCE GOODEN

                                of texas

                    in the house of representatives

                         Friday, August 4, 2023

  Mr. GOODEN of Texas. Mr. Speaker, I rise today to discuss an 
important issue to both our nation's employers and their employees; and 
that is regarding the applicability of the Airline Deregulation Act 
(ADA) to State Workers' Compensation programs. When Congress enacted 
the ADA in 1978, one of the main goals was to place maximum reliance on 
competitive market forces to help lower prices and improve efficiency, 
innovation, variety, and competition in the delivery of air 
transportation services.
  But the ADA was never intended to prohibit states from regulating 
workers' compensation systems.
  In my home state of Texas, there has been litigation on this issue 
for over a decade, and there is no end in sight. That is why Congress 
needs to step in and why I filed Amendment 300 to H.R. 3935, the 
Securing Growth and Robust Leadership in American Aviation Act.
  My amendment, which unfortunately was not able to be made in order as 
part of the House's consideration of H.R. 3935, would have amended the 
Airline Deregulation Act to clarify that the original intent of the ADA 
was not to preempt state workers' compensation laws with respect to 
billing and payments for air ambulance services.
  The foundation of the state workers' compensation system is 
individual state regulation of reimbursement amounts under their 
workers' compensation medical fee schedules, thereby creating cost 
transparency. In most states, this is accomplished by setting workers' 
compensation medical fee services at a percentage above what providers 
receive under Medicare.
  As a result, workers' compensation coverage is widely available to 
employers of every size across all industries; and ensures employees 
are protected from the economic impact of workplace injuries.
  Unfortunately, the protections and certainty this system affords both 
employers and workers alike started to be undermined in 2010 when 
numerous air ambulance service providers began asserting the ADA 
preempts state workers' compensation medical fee schedules, creating a 
pathway for air ambulance fees to unreasonably skyrocket.
  The preemption of state workers' compensation laws within the ADA is 
a pure accident. When Congress passed the ADA in 1978 to deregulate the 
airline industry, it certainly did not intend to deregulate workers' 
compensation insurance payments to air ambulance companies.
  As part of the 2018 FAA Reauthorization Act, Congress established the 
Air Ambulance and Patient Billing Advisory Committee at the Department 
of Transportation to address several issues involving air ambulance 
companies, including medical fees, consumer choice, and protecting 
consumers from balance billing. In March 2022, the Advisory Committee 
submitted its report to Congress, which included a recommendation to 
amend the ADA to clarify that it does not preempt state laws relating 
to state regulation of workers' compensation insurance programs.
  My proposed amendment to H.R. 3935 embodies the Advisory Committee's 
recommendation and will address the accidental preemption of state 
workers' compensation laws and the inadvertent federalization of a part 
of state workers' compensation systems. This simple clarification that 
the ADA preemption provision does not apply to state workers' 
compensation payments for air ambulance services will return the issue 
to the states where it belongs, and air ambulance companies will have 
every opportunity to make their arguments on the appropriate payment 
amounts for their services within each state's workers' compensation 
system.
  Unfortunately, my amendment was not included in the bill that was 
considered by the House, but I will continue to work with other members 
on legislation to address this important issue.

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