NCCMP Legislative Scorecard

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•	Legislative Scorecard

•	Pension Reform-2006

July 2005

2005 HEALTH LEGISLATION (109th Session of Congress)
Bill Number	Short Title	Bill Status	Bill Summary	NCCMP Position
HR 328	Pharmaceutical Market Access Act 2005	Referred to Energy / Commerce and Judiciary; 03/02/05. Referred to Cournts, Internet and Intellectual Property; Related to S 109	Introduced by Rep. G Gutknecht (MI-1) – 01/25/05 Amends FDA Act to allow importation of prescription drugs from approved countries/sources	Re-importation of drugs from approved countries and approved sources is expected to provide cost savings to multiemployer plans by lowering the costs of prescription drugs acquired for plan participants.
HR 462	Medicare Corporate Accountability Act of 2004	Referred to Health on 2/14/05	Introduced by Rep. Eliot L Engel (NY-17) on 2/01/05 – Imposes excise tax on employers/employee organizations that cancel retiree prescription drug coverage for retirees 65 and over. Taxes go into Medicare Drug account	NCCMP generally opposes restrictions on the ability of Trustees to modify plan coverage.
HR 525	Small Business Health Fairness Act	Referred to Education/Workforce; 3/16/05 - Ordered to be Favorably Reported to the House (Yeas and Nays: 25 – 22); 4/13/05 - Reported by Ed/Workforce placed on union calendar #22; 7/26/05 - House passed by the Yeas and Nays: 263 - 165 (Roll no. 426); 7/27/05 - Referred to Senate, read twice and referred to HELP committee.	Introduced by Rep. Sam Johnson (TX-3) 2/2/05 - Proposes Association Health Plans	While joint purchasing and consolidated administration have been beneficial for multiemployer plans, provisions that could subject multiemployer plans to meet mandatory reserve requirements by expanding the scope of statutory and regulatory requirements to which plans are subjected (among others) are problematic. Unlike insurance companies, multiemployer plans are already subject to provisions of ERISA and the Taft-Hartley Act which, by definition, require employee representation on the Board of Trustees that sets coverage and payment policies.
HR 534	Health Act of 2005	Referred to Judiciary and Energy/Commerce on 2/2/05 and referred to Health on 2/25/05	Introduced by Rep. Chris Cox (CA-48) 2/2/2005 – reduces excessive burden liability system puts on health care – caps litigation recoveries. Related to S354; 366, 367	Proposed legislation does nothing to address quality of care issues that have given rise to medical litigation; instead it limits injured persons’ recovery amounts which are an insignificant factor in the rise of health care costs.
HR 735	Family Building Act of 2005	Referred to Employer-Employee Relations on 3/24/05	Introduced by Rep. Anthony Weiner (NY-9) on 2/9/2005 – Amends Public Health Act and ERISA to require coverage for infertility	Under current law, ERISA does not require health plans to provide specific coverage features, unlike insured plans that are required to provide “mandatory coverages” stipulated by state insurance laws outside of ERISA. Multiemployer plans have been free to bargain through the collective bargaining process to provide the types of coverage that meets the employer and employee needs within the plan’s economic confines. Treating self-funded, multiemployer plans in the same manner as insured vehicles by mandating coverage for infertility will limit the flexibility that has proven critical to the success of self-funded, multiemployer plans.
HR 1058	Employee Benefits Protection Act of 2005	4/29/2005 Referred to Employer-Employee Relations	Introduced 3/2/2005 by Rep. Carolyn McCarthy (NY-4) - Amends ERISA to prevent employees from being disqualified from benefits under pension or welfare plans based on employer misclassification or reclassification of their status	Although the bill primarily is designed to protect participants whose employers have improperly classified their employment status so as to deprive them of benefits under their plans, proposed legislation also changes ERISA Section 502 remedies to include compensatory and remedial relief in addition to traditional equitable relief. NCCMP continues to generally oppose modifications to ERISA Section 502 remedies.
HR 1200	American Health Security Act of 2005	Referred to Military Personnel on 4/6/05	Introduced by Rep. J McDermott (WA-7), 3/9/2005 – Creates American Health Security Program to cover all U.S. citizens, nationals, and lawful resident aliens with health care services. Revises the Internal Revenue Code to create the American Health Security Trust Fund to which it allocates specified taxes and current health program dollars.	Combining Medicare, Medicaid, S-CHIP, CHAMPUS, and FEHBP programs into a national health security fund may be a step in the direction of providing coverage to the nation’s uninsured. Unlike the Social Security pension system, the Health Security Act would apply to all US citizens or lawful resident aliens, not just those 65 or older, and health coverage would be provided under a series of State health security programs to be administered by the states in accordance with federal standards. At the same time, however, the proposed bill prohibits the sale of insured products duplicating coverage under the American Health Security Act. Therefore, the bill would appear to have the effect of eliminating basic health coverage under all existing insured health plans (including fully-insured multiemployer plans), turning them into supplemental or excess coverage providers over and above the American Health Security program. Multiemployer plans that are self-funded would not appear to be subject to the duplicate coverage prohibition. Self-funded multiemployer plans are uniquely poised to be innovative and responsive to the needs of their participants by redesigning the types of supplemental coverage they would provide if this bill were enacted.
HR 1322	Emergency Retiree Health Benefits Protection Act of 2005	Referred to Employer- Employee Relations on 4/18/05	Introduced by Rep. John Tierney 3/15/2005 – Amends ERISA to require group health plans to amend plan terms so as to prohibit reducing retiree health benefits after a participant’s retirement is effective. Requires group health plans to restore benefits reduced after retirement.	Proposed legislation basically "vests" retiree health coverage that is in effect on a plan participant’s retirement date. NCCMP generally opposes restrictions on the Trustees’ ability to modify coverage.
HR 1402	Paul Wellstone Mental Health Equitable Treatment Act of 2005	Referred to Employer-Employee Relations on 4/18/2005	Introduced by Rep. Patrick Kennedy (RI -1)- 3/17/2005; Prohibits health insurance coverage limitations on mental health benefits unless also applicable to medical/surgical benefits	Many multiemployer plans impose separate dollar or stay limitations on mental health/substance abuse coverage as a way of controlling utilization rates (and therefore costs). The proposed bill requires coverage of mental health benefits without limitation unless medical/surgical benefits also carry the same limitation. This may have the unintended result of instituting new limitations on medical/surgical benefits especially for those plans where mental health (and substance abuse) costs are skyrocketing.
HR 2203	Patients Health Care Reform Act	5/31/2005 - Referred to Employer-Employee Relations	Introduced by Rep. John B. Shadegg (AZ-3) May 5, 2005 - amends the Internal Revenue Code to allow individuals a credit against income tax for health insurance costs and provides an exclusion of employer payments from gross income for employees who elect not to participate in employer-provided health plans	The proposed legislation attempts to move the responsibility for delivery of health care services from employers to individuals who then would purchase health care in the marketplace (if it’s available). Proposed legislation creates Healthmarts which makes available health benefits coverage to all employers, eligible employees, and individuals at rates (including employer's and employee's share) that are established by the health insurance company on a policy or product specific basis and that may vary only as permissible under State law. The law also creates Individual Membership Associations (IMAs) to provide healthcare through insured vehicles. The scope of this legislation also includes Association Health Plans and deems multiemployer plans to be Association Health Plans. In addition, coverage under an Association Health Plan is mandated to consist of 4 health insurance options, at least 1 of which is an out-of-network provider. At least 2 options must meet State mandates. NCCMP opposes restricting Trustee discretion to decide on a benefit package so that provisions that could subject multiemployer plans to meet mandatory reserve requirements by expanding the scope of statutory and regulatory requirements to which plans are subjected (among others) are problematic. Unlike insurance companies, multiemployer plans are already subject to provisions of ERISA and the Taft-Hartley Act which, by definition requires employee representation on the Board of Trustees that sets coverage and payment policies.
HR 2259	Patients’ Bill of Rights Act of 2005	5/11/2005: Referred to Energy and Commerce, and Education and the Workforce, and Ways and Means and Energy and Commerce 5/23/2005: Referred to Health 5/31/2005: Referred to Employer-Employee Relations	Introduced by Rep. John Dingell (MI-15) May 11, 2005 - amends the Public Health Service Act, ERISA, and the Internal Revenue Code to protect consumers in managed care plans and other health coverage	The proposed law contains a provision that greatly expands ERISA’s remedies provision to permit participants or beneficiaries to sue the Plan’s fiduciaries, sponsors, or agents for failure to exercise ordinary care in making benefit decisions if such failure is the proximate cause of personal injury or death of participant/beneficiary. NCCMP continues to generally oppose modifications to ERISA Section 502 remedies.
S16	Affordable Health Care Act	Referred to Finance on 1/24/05	Introduced by Sen. E. Kennedy (MA) 1/24/05 – permits importation of qualifying prescription drugs from permitted countries; promotes health care information technology improvements (including loans and grants to obtain them); promotes standardized measures of quality health care and data collection; provides universal coverage for pregnant women and children under Medicaid and S-CHIP; provides tax credit for amounts paid toward health insurance of dependent child in excess of 5% of AGI; reduction of exemption if child not covered by health insurance; three-share program grants.	Reducing drug acquisition costs for plans by permitting the importation of quality drugs from other approved countries/sources and the technology improvement provisions are important steps toward improvement in health care cost containment. The standardization of quality health care and universal coverage for pregnant women and children under adequately funded Medicaid and S-CHIP programs also hold potential to reduce further cost shifting to plans.
S109	Pharmaceutical Market Access Act of 2005	Referred to HELP	Introduced by Sen. D. Vitter 1/24/05 - Amends FDA to permit importation of drugs - Related to HR 328	Re-importation of drugs from approved countries and approved sources is expected to provide cost savings to multiemployer plans by lowering the costs of prescription drugs acquired for plan participants.
S 184	Safe Import Act of 2005	Referred to HELP on 1/26/05	Introduced by Sen. J. Gregg (NH)– 1/26/05 – Amends FDA to prohibit importation of unsafe/counterfeit drugs	Re-importation of drugs from approved countries and approved sources is expected to provide cost savings to multiemployer plans by lowering the costs of prescription drugs acquired for plan participants.
S222	Keep the Promise of Medicare Act of 2005	Referred to Finance on 1/31/05	Introduced by Sen. D Stabenow – 1/31/2005 – Amends Social Security Act so that the monthly Part B premium rate for each month in 2005 may not exceed the monthly premium rate for each month in 2004 adjusted by a specified CPI index	Legislation that attempts to make premium costs more predictable contributes to retirement income security.
S334	Pharmaceutical Market Access and Drug Safety Act of 2005	02/09/2005 – Referred to HELP; Hearings held on 4/19/05	Introduced 2/9/2005 by Sen. Byron L. Dorgan – amends FDCA to permit the importation of prescription drugs; related to HR 700.	Importation of drugs from approved countries and approved sources is expected to provide cost savings to multiemployer plans by lowering the costs of prescription drugs acquired for plan participants.
S354	Health Act of 2005; Related to HR 534; S366; S367	Referred to HELP on 2/10/05	Introduced by Sen. John Ensign – 2/10/2005 - Regulates health care liability claims Act does not limit recovery of full economic damages. Act limits noneconomic damages to $250,000. Allows court restriction on contingency fees. Requires the court to reduce damages by amount of collateral source benefits, unless payor has right to reimbursement or subrogation. Prohibits product liability or class action lawsuit against health care provider for dispensing an FD-approved prescription drug or device	Proposed legislation does nothing to address quality of care issues that have given rise to medical litigation; instead it limits injured persons’ recovery amounts which are an insignificant factor in the rise of health care costs.
S406	Small Business Health Fairness Act of 2005	Referred to HELP	Introduced by Sen. O. Snowe – 02/17/2005 – creates Association Health Plans	While joint purchasing and consolidated administration have been beneficial for multiemployer plans, provisions that could subject multiemployer plans to meet mandatory reserve requirements by expanding the scope of statutory and regulatory requirements to which plans are subjected (among others) are problematic. Unlike insurance companies, multiemployer plans are already subject to provisions of ERISA and the Taft-Hartley Act which, by definition requires employee representation on the Board of Trustees that sets coverage and payment policies.
S 820	Promoting Health Care Purchasing Cooperatives Act	Referred to HELP on 4/15/05	Introduced by Sen. R. Feingold, 4/15/2005 – Awards grants to promote development of health care cooperatives that will help businesses pool the health care purchasing power of employers	An alternative to Association Health Plans, this legislation grants the Secretary of HHS authority to provide grants to small employers to form non-profit, democratically-run purchasing cooperatives. It contains none of the MEWA-like provisions of other House/Senate AHP purposed legislation and does not appear to sweep multiemployer plans up into a new regulatory net.
2005 PENSION LEGISLATION (109th Session of Congress)
Bill Number	Short Title	Bill Status	Bill Summary	NCCMP Position
HR 1508	401(k) Automatic Enrollment Act of 2005	4/6/2005: Referred to Education and the Workforce, and Ways and Means 4/29/2005: Referred to Employer-Employee Relations	Introduced by Rep. R. Emanuel [IL-5] 4/6/2005 - Amends the Internal Revenue Code and ERISA to permit 401(k) pension plans to include an automatic enrollment arrangement. Limits the duties and liabilities of fiduciaries with respect to automatic rollovers of 401(k) pension plan assets	Legislation aimed at improving participation of non-highly compensated employees in plans addresses an important policy objective.
HR 2830	Pension Protection Act of 2005	Referred to Education and Workforce, and in addition to Ways and Means; 6/22/2005 - Subcommittee to Full Committee (Amended) by Voice Vote; 6/30/05 - full committee reported out as amended by majority (party lines)	Introduced by Rep. Boehner (Ohio) 6/9/2005 Amends ERISA and the Internal Revenue Code to reform the pension funding rules, and for other purposes	Many of the multiemployer provisions of this bill reflect provisions put forward in a bi-partisan proposal supported by a coalition of employers, unions, and multiemployer plans; however, substantial modifications are necessary before passage of the final bill.
HR 2321	Pension Security Disclosure Act of 2005	Referred to Education and Workforce; 5/31/2005 – Referred to Employer-Employee Relations	Introduced by Rep. Lloyd Doggett (TX-25) 5/12/2005 – expands disclosure requirements with respect to the funding status of pension plans	Requires PBGC to publicly disclose in electronic format and on its Internet website, records, documents and other information filed with the PBGC. In addition, plan administrators are required to provide directly to participants/beneficiaries a summary of the information provided to the PBGC and the fact that the information is available on the PBGC website. Increasing PBGC’s public disclosure of information upon which it bases its directives and policy statements and making that disclosure widely and freely available on the internet is a positive step.
HR 1960	Preservation and Savings Expansion Act of 2005	Referred to Ways and Means, and Education and the Workforce; 5/31/2005 – Referred to Employer-Employee Relations Related to HR 1961	Introduced by Rep. Portman (R-OH) 4/28/05 - expands pension coverage and savings opportunities and to provide other pension reforms	Legislation basically the same as that proposed last Congress. Makes permanent the EGTRRA pension savings provisions.
HR 1961	Preservation and Savings Expansion Act of 2005	Referred to Ways and Means, and Education and the Workforce; 5/31/2005 – Referred to Employer-Employee Relations Related to HR 1960	Introduced by Rep. Cardin (D-MD) 4/28/2005 - To expand pension coverage and savings opportunities and to provide other pension reforms.	Basically the same as Portman’s legislation except that it would repeal Roth 401(k) Plans before they begin January 1, 2006.
S 219	NESTEG	Referred to Finance	Introduced by Sen. Grassley / Baucus (IA) – 1/31/2005 – NESTEG requires companies to allow employees to diversify out of stock, adopts permanently the yield curve as the replacement for 30-year Treasury rates used for pension funding, expands pension portability, permits employers that sponsor defined benefit plans to fund up to 130% of the current liability instead of 100%. Employers with junk bond ratings would have to freeze accruals in their pension plans if vested benefits are less than 50% funded and no lump sum payouts would be permitted. In addition, the bill lowers the PBGC premium for new, small employers to $5 per participant, rather than $19, for the first five years. Benefits for majority owners (50% or more) would phase in over ten years. The bill also calls for the PBGC’s "missing participant" program to be expanded to single employer defined contribution plans and a similar program to be set up for multiemployer plans. The bill also requires the notice and consent to distribution period to be expanded from 90 to 180 days. The bill has two provisions that affect multiemployer plans directly. Section 701 extends the ability to transfer excess pension assets to a multiemployer health plan. Section 702 permits transfer of excess funds from the black lung benefit trusts to the UMWA Combined Benefit Fund.	Pension reform legislation that encourages the perpetuation of defined benefit pension plans of all types is an important public policy objective. The increase in the maximum contribution level for defined benefit plans is an important step to avoid the adoption of benefit improvements needed for the sole purpose of preserving the current deductibility of employer contributions.
S 875	Save More for Retirement Act of 2005	4/21/2005 - Referred to Finance.	Introduced by Sen. J Bingaman (NM) – 4/21/2005 - Amends the Internal Revenue Code and ERISA to increase participation in section 401(k) plans	Legislation aimed at improving participation of non-highly compensated employees in plans addresses an important policy objective.
2005 TAX LEGISLATION (109th Session of Congress)
Bill Number	Short Title	Bill Status	Bill Summary	NCCMP Position
HR 25	Fair Tax Act of 2005	Referred to Ways/Means	Introduced by Rep. J Linder (GA-7) 1/4/2005 - Eliminates IRS Code, changes tax system to consumption tax	Proposals for changes in the tax code that eliminate deductions for contributions to employer sponsored health benefit programs pose a serious threat to the continuation of such plans, including multiemployer plans.
S25	Fair Tax Act of 2005	Referred to Finance	Introduced by Sen. Chambliss (GA) 1/24/05 - Eliminates IRS Code, changes tax system to consumption tax	Proposals for changes in the tax code that eliminate deductions for contributions to employer sponsored health benefit programs pose a serious threat to the continuation of such plans, including multiemployer plans.
HR 1040	Freedom Flat Tax Act	Referred to Ways/Means	Introduced by Michael Burgess (R-TX) on 3/2/2005 - Amends the Internal Revenue Code to permit taxpayers to make an irrevocable election to be subject to a flat tax (in lieu of the existing tax provisions) Flat tax: 19 percent for the first two years after an election is made, and then 17 percent	Proposals for changes in the tax code that eliminate deductions for contributions to employer sponsored health benefit programs pose a serious threat to the continuation of such plans, including multiemployer plans.

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