[House Report 113-580]
[From the U.S. Government Publishing Office]
113th Congress } { Rept. 113-580
2d Session } HOUSE OF REPRESENTATIVES { Part 1
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EMPLOYEE HEALTH CARE PROTECTION ACT OF 2013
_______
September 8, 2014.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Upton, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 3522]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 3522) to authorize health insurance issuers to
continue to offer for sale current group health insurance
coverage in satisfaction of the minimum essential health
insurance coverage requirement, and for other purposes, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 1
Hearings......................................................... 1
Committee Consideration.......................................... 1
Committee Votes.................................................. 1
Committee Oversight Findings..................................... 4
Statement of General Performance Goals and Objectives............ 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 4
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 4
Committee Cost Estimate.......................................... 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 4
Duplication of Federal Programs.................................. 4
Disclosure of Directed Rule Makings.............................. 4
Advisory Committee Statement..................................... 5
Applicability to Legislative Branch.............................. 5
Section-by-Section Analysis of the Legislation................... 5
Dissenting Views................................................. 6
Purpose and Summary
H.R. 3522 permits a health insurance issuer that has in
effect health insurance coverage in the group market on any
date during 2013 to continue offering such coverage for sale
during 2014 outside of a health care exchange established under
the Patient Protection and Affordable Care Act (PPACA). Such
plans may be offered notwithstanding the provisions of the
Patient Protection and Affordable Care Act and the Health Care
and Education Reconciliation Act.
Background and Need for Legislation
During the debate over PPACA, President Obama stated,
``[w]e will keep this promise to the American people: If you
like your doctor, you will be able to keep your doctor, period.
If you like your health care plan, you'll be able to keep your
health care plan, period. No one will take it away, no matter
what.'' However, health coverage not in compliance with
requirements of PPACA generally cannot be offered after 2014.
PPACA's requirements affect the ability of many individuals to
keep plans that they relied upon in both the nongroup and group
markets.
While the Department of Health and Human Services has
delayed administratively some of PPACA's requirements and some
plan cancellations in certain instances, the remaining non-
compliant ACA plans in effect will ultimately be ended under
current law.
Hearings
The Subcommittee on Health held a hearing on H.R. 3522 on
July 28, 2014. The Subcommittee received testimony from:
Edmund Haislmaier, Senior Research Fellow,
Heritage Foundation;
Stan Veuger, Resident Scholar, American
Enterprise Institute; and,
John Hoadley, Research Professor, Georgetown
University.
Committee Consideration
On July 29, 2014, the full Committee met in open markup
session and approved H.R. 3522 by a vote of 27 yeas and 20
nays.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. A
motion by Mr. Upton to order H.R. 3522 reported to the House,
was agreed to by a record vote of 27 yeas and 20 nays. The
following reflects the record votes taken during the Committee
consideration:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held a hearing and made
findings that are reflected in this report.
Statement of General Performance Goals and Objectives
The purpose of this act is to protect Americans from losing
their preferred health coverage and provide more affordable
choices to America's workers.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
3522 would result in no new or increased budget authority,
entitlement authority, or tax expenditures or revenues.
Earmark, Limited Tax Benefits, and Limited Tariff Benefits
In compliance with clause 9(e), 9(f), and 9(g) of rule XXI
of the Rules of the House of Representatives, the Committee
finds that H.R. 3522 contains no earmarks, limited tax
benefits, or limited tariff benefits.
Committee Cost Estimate
Pursuant to section 402 of the Congressional Budget Act of
1974, the Committee estimates that enacting this legislation
would have no significant impact on the Federal budget.
Congressional Budget Office Estimate
With respect to clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives, an estimate and comparison
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act of 1974 was
not submitted to the Committee before the of filing of the
report.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Duplication of Federal Programs
No provision of H.R. 3522 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The Committee estimates that enacting H.R. 3522 does not
direct any specific rule making within the meaning of 5 U.S.C.
551.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 provides the short title of ``Employee Health
Care Protection Act.''
Section 2. If you Like Your Group Health Insurance Plan, You Can Keep
It
Section 2 permits health insurance issuers to continue to
offer coverage effective in 2013, notwithstanding requirements
of PPACA. Such coverage shall be treated as a grandfathered
health plan for purposes of an individual meeting the
requirement to maintain minimum essential health coverage.
DISSENTING VIEWS
H.R. 3522 would permit any health insurance issuer offering
coverage in the group market in 2013 to continue to offer that
coverage in 2014 and beyond, regardless of whether those
policies include the critical consumer protections provided by
the Affordable Care Act (ACA).
While critics of the ACA have inaccurately claimed that
enhanced consumer protections for American families would kill
jobs, lead to employers dropping coverage and cause increases
in the rate of health spending growth, the facts show
otherwise.
As key reforms went into effect, health care cost growth
was at record lows and the United States has added 10 million
private sector jobs. The non-partisan Congressional Budget
Office (CBO) and the Centers for Medicare and Medicaid
Services' (CMS) Actuary have both found that in recent years
Medicare and private health care spending have grown at some of
the slowest levels in decades.
And, contrary to fictitious charges that the ACA will lead
some employers to terminate employer health insurance coverage
because the law's new beneficiary protections will be too
costly for businesses, the overall number of Americans
receiving employer-based coverage is expected to grow from 156
million in 2014 to 166 million in 2023, and the number of
uninsured is expected to fall by 26 million people, according
to the latest estimates from CBO.
This outcome is supported by the Massachusetts experience
as well. Massachusetts enacted health care reforms that were
almost identical to those in the ACA. In that instance, the
percentage of employers offering coverage has increased from 72
percent in 2007 to 77 percent in 2010.
The legislation, while masquerading as ``choice'' for
consumers, simply eviscerates the critical consumer protections
that ensure women, older workers, people with disabilities, and
individuals with pre-existing conditions rely on to make
coverage available. The bill would allow insurance companies to
discriminate against small businesses if they have an older
workforce, more women in their workforce, or if any of their
employees or their children have pre-existing health
conditions.
Under the legislation, these small businesses would face
higher premiums and would continue to see their premiums spike
year to year if an employee had an accident, developed a
chronic health condition, or had a complicated pregnancy.
Group health insurance plans could continue to impose
annual limits on coverage, meaning that insurers could cease to
provide any coverage after an individual's care reached a
certain overall cost. These plans could also continue to impose
extensive waiting periods before individuals could enroll in
coverage and they could discriminate against workers with lower
compensation by offering them lesser health coverage than
highly compensated workers.
In March 2014, the Administration announced a transition
policy that would allow small groups who purchased coverage in
2013 to remain in that same coverage into 2016. That coverage
would not have to comply with ACA consumer protections going
into effect in 2014 but it could not be sold to groups
purchasing coverage for the first time or switching coverage.
Many of the ACA's key reforms impacting the group market
had already gone into effect for plans sold in 2013. Since
2011, all insurers are required to spend over 80 percent of
premiums on patient care rather than excessive profits and
administrative costs. Insurers in the large group market are
required to spend at least 85 percent of premiums on patient
care. All told, these reforms saved consumers more than $4
billion in 2013 and have resulted in early $2 billion in
rebates directly to consumers.
In short, the legislation is unnecessary, and harms
consumers.
Henry A. Waxman.
Frank Pallone, Jr.