Fiscal Responsibility and Retirement Security Act - Amends the Public Health Service Act, as amended by the Patient Protection and Affordable Care Act, to require congressional approval of the designation by the Secretary of Health and Human Services (HHS) of a benefit plan as the CLASS Independence Benefit Plan under the CLASS program (a national, voluntary insurance program for purchasing community living assistance services and supports). Sets forth procedures for such congressional approval by joint resolution.
Prohibits an employer from enrolling an employee in the CLASS program without providing specified notice to the employee, which includes: (1) the significant risk of failure of such a program; (2) information on deficits that the program is expected to run; (3) a statement that there is no separate pool of money set aside to pay the CLASS program benefits; and (4) an explanation of the immediate termination of the program if it is reported to be actuarially unsound.
Prohibits premiums from being collected before the Secretary has promulgated the required regulations in final form.
Terminates such program if the report by the Board of Trustees of the CLASS Independence Fund indicates that the Fund is projected to be actuarially unsound over the 75-year period beginning with the fiscal year in which such report is submitted. Establishes a refund process.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5853 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5853
To amend title XXXII of the Public Health Service Act to require review
and approval by law prior to collection of premiums under the CLASS
program, to require notice to individuals prior to enrollment, and to
require termination of the program in the event of actuarial
unsoundness, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 26, 2010
Mr. Boustany introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committee on
Rules, 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 title XXXII of the Public Health Service Act to require review
and approval by law prior to collection of premiums under the CLASS
program, to require notice to individuals prior to enrollment, and to
require termination of the program in the event of actuarial
unsoundness, and for other purposes.
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 ``Fiscal Responsibility and Retirement
Security Act''.
SEC. 2. REVIEW AND APPROVAL BY LAW OF DESIGNATION OF CLASS INDEPENDENCE
BENEFIT PLAN.
Title XXXII of the Public Health Service Act, as added by section
8002(a) of the Patient Protection and Affordable Care Act (Public Law
111-148), is amended--
(1) in section 3203(a)--
(A) in paragraph (3), in the second sentence, by
inserting ``and shall submit to Congress a report
containing such designation, details, and reasons''
after ``public comment''; and
(B) by adding at the end the following new
paragraph:
``(4) Approval by law of designation.--No premiums may be
deducted from an individual's wages or otherwise collected
under section 3204(e) unless there is enacted into law, in
accordance with section 3211(a), a joint resolution approving
the designation of the CLASS Independence Benefit Plan by the
Secretary under paragraph (3).''; and
(2) by adding at the end the following new section:
``SEC. 3211. PROCEDURAL REQUIREMENTS FOR APPROVAL BY LAW OF DESIGNATION
OF CLASS INDEPENDENCE BENEFIT PLAN.
``(a) In General.--For purposes of paragraph (4) of section
3203(a), the following shall apply:
``(1) Receipt of reports.--It shall not be in order in the
Senate or in the House of Representatives to consider a joint
resolution described in such paragraph unless the Senate or the
House of Representatives, respectively, has received, not fewer
than 60 days prior to such consideration--
``(A) the report of the Secretary described in
section 3203(a)(3); and
``(B) the report of the Chief Actuary of the
Centers for Medicare & Medicaid Services described in
paragraph (2).
``(2) Report of cms chief actuary.--Not later than 60 days
after the Secretary designates the CLASS Independence Benefit
Plan under section 3203(a)(3), the Chief Actuary of the Centers
for Medicare & Medicaid Services shall submit to Congress a
report on the long-term actuarial soundness of the CLASS
Independence Benefit Plan. Such report shall include--
``(A) an estimate of the average premium per
enrollee per year that will be required to ensure that
the CLASS Independence Fund will be actuarially sound
over the 75-year period beginning with the fiscal year
in which such report is submitted; and
``(B) an estimate of the average amount of benefits
that will be paid per enrollee per year over such
period.
``(3) Joint resolution defined.--The term `joint
resolution' means only a joint resolution, the matter after the
resolving clause of which is as follows: `That Congress
approves of the CLASS Independence Benefit Plan designated by
the Secretary of Health and Human Services under section
3203(a)(3) of the Public Health Service Act.'. Such term does
not include a resolution that specifies more than one action.
``(b) Exercise of the Rulemaking Power of Each House.--Subsection
(a) is enacted by Congress--
``(1) as an exercise of the rulemaking power of the Senate
and the House of Representatives, respectively, and is deemed
to be part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed in
that House in the case of a joint resolution under such
subsection, and it supersedes other rules only to the extent
that it is inconsistent with such rules; and
``(2) with full recognition of the constitutional right of
either House to change the rules (so far as they relate to the
procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of that
House.''.
SEC. 3. REQUIRED NOTICE PRIOR TO ENROLLMENT.
Section 3204(a) of the Public Health Service Act, as added by
section 8002(a) of the Patient Protection and Affordable Care Act
(Public Law 111-148), is amended by adding at the end the following new
paragraph:
``(4) Required notice prior to enrollment.--
``(A) In general.--An employer may not enroll an
employee in the CLASS program under paragraph (1)
unless, prior to enrolling the employee, the employer--
``(i) has provided to the employee the
exact statements described in subparagraph (C)
in a single written notice that displays such
statements in the order in which they are set
forth in such subparagraph; and
``(ii) certifies to the Secretary that the
individual has received such notice.
``(B) Enrollment other than by employer.--In the
case of an individual seeking to enroll in the CLASS
program other than through enrollment by the
individual's employer under paragraph (1), the
Secretary shall not permit the individual to enroll
unless, prior to the individual's enrollment, the
Secretary has provided to the individual the exact
statements described in subparagraph (C) in a single
written notice that displays such statements in the
order in which they are set forth in such subparagraph
and the individual has acknowledged in writing the
receipt of such notice.
``(C) Statements described.--The statements
described in this subparagraph are the following:
``(i) The Chief Actuary of the Centers for
Medicare & Medicaid Services made the following
assessment in April 2010 regarding the CLASS
program: `In general, voluntary, unsubsidized,
and non-underwritten insurance programs such as
CLASS face a significant risk of failure as a
result of adverse selection by participants.
Individuals with health problems or who
anticipate a greater risk of functional
limitation would be more likely to participate
than those in better-than-average health. . . .
[T]here is a very serious risk that the problem
of adverse selection will make the CLASS
program unsustainable.'.
``(ii) The Chief Actuary estimated in April
2010 that the CLASS program will likely begin
to run deficits in 2025 and continue to run
deficits thereafter.
``(iii) The Chief Actuary further estimated
in April 2010 that an initial average premium
level of about $240 per month would be required
to adequately fund CLASS program costs.
``(iv) The Federal Government will collect
more than $70 billion in CLASS program premiums
from 2012 through 2019, according to an
estimate of the Congressional Budget Office in
March 2010. Although these premiums are
credited as IOUs or United States Government
securities in a `CLASS Independence Fund,' the
money, itself, is used to pay for other
Government expenses, including other programs
under the health care law enacted in March 2010
that are unrelated to the CLASS program. There
is no separate pool of money set aside to pay
CLASS program benefits, and workers and
retirees could be required to repay these IOUs
in the form of higher taxes.
``(v) Under section 3212 of the Public
Health Service Act, the CLASS program will
terminate immediately if an annual report of
the Board of Trustees of the Class Independence
Fund indicates that the CLASS program will not
be actuarially sound over the 75-year period
beginning with the fiscal year in which the
report is submitted.''.
SEC. 4. NO COLLECTION OF PREMIUMS PENDING PROMULGATION OF FINAL
REGULATIONS.
Section 3208(c) of the Public Health Service Act, as added by
section 8002(a) of the Patient Protection and Affordable Care Act
(Public Law 111-148), is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary''; and
(2) by adding at the end the following new paragraph:
``(2) No collection of premiums pending promulgation of
final regulations.--No premiums may be deducted from an
individual's wages or otherwise collected under section 3204(e)
before the Secretary has promulgated, in final form--
``(A) the regulations described in section
3202(6)(C);
``(B) the rule described in section 3203(a)(3); and
``(C) the regulations described in paragraph
(1).''.
SEC. 5. TERMINATION OF PROGRAM IF CLASS INDEPENDENCE FUND ACTUARIALLY
UNSOUND.
Title XXXII of the Public Health Service Act, as amended by section
2, is further amended by adding at the end the following new section:
``SEC. 3212. TERMINATION OF PROGRAM IF CLASS INDEPENDENCE FUND
ACTUARIALLY UNSOUND.
``(a) In General.--If the Board of Trustees of the CLASS
Independence Fund submits to Congress the report described in
subsection (b) (relating to the actuarial unsoundness of the CLASS
Independence Fund)--
``(1) no individual shall be enrolled under section 3204(a)
in the CLASS program after the date of the submission of the
report;
``(2) no premiums shall be deducted from an individual's
wages or otherwise collected under section 3204(e) after such
date;
``(3) no benefits shall be provided under section 3205(c)
after such date;
``(4) the Secretary shall refund any amount remaining in
the CLASS Independence Fund (established under section 3206(a))
on such date, according to the process described in subsection
(c), and send notification to the Secretary of the Treasury
when the refund is complete;
``(5) in the case of notification under paragraph (4), the
CLASS Independence Fund and the Board of Trustees of the CLASS
Independence Fund (established under section 3206(c)(1)) shall
be abolished as of the date of such notification;
``(6) the CLASS Independence Advisory Council (established
under section 3207(a)) is abolished as of the date of the
submission of the report;
``(7) the Secretary shall take such other steps as the
Secretary considers necessary to terminate the CLASS program;
``(8) in lieu of the annual report required by section
3208(d), the Secretary shall submit to Congress a quarterly
report on the status of the termination of the CLASS program in
accordance with this section, until such time as the Secretary
indicates in such a report that the program has been completely
terminated; and
``(9) in lieu of the annual report required by section
3209, the Inspector General of the Department of Health and
Human Services shall submit to Congress a quarterly report on
the Secretary's progress in terminating the CLASS program in
accordance with this section, including the existence of any
waste, fraud, or abuse in connection with the termination
activities, until such time as the Inspector General indicates
in such a report that the program has been completely
terminated.
``(b) Report of Unsoundness.--The report described in this
subsection is a report under subparagraph (A)(ii) of section 3206(c)(2)
that contains a statement described in subparagraph (B)(i)(III) of such
section that indicates that the CLASS Independence Fund is projected to
be actuarially unsound over the 75-year period beginning with the
fiscal year in which such report is submitted.
``(c) Refund of Amount in CLASS Independence Fund.--The refund
process described in this subsection is the following:
``(1) In general.--Not later than 180 days after the date
of the submission of the report described in subsection (b),
subject to paragraph (2), the Secretary shall pay to each
individual enrolled in the CLASS program on the date of the
submission of such report an amount from the CLASS Independence
Fund equal to the difference of--
``(A) the total amount such respective individual
paid in premiums as of such date under the CLASS
program; and
``(B) the lesser of--
``(i) the total amount of benefits
described in section 3205(b) received as of
such date by such individual under the program;
or
``(ii) the amount described in subparagraph
(A).
``(2) Insufficient or excess funds.--
``(A) Insufficient funds.--If the amount remaining
in the CLASS Independence Fund on the date of the
submission of the report described in subsection (b) is
insufficient to make the refund described in paragraph
(1), the Secretary shall pay to each individual
enrolled in the CLASS program on such date an amount
that bears the same ratio to the amount remaining in
the CLASS Independence Fund on such date as the amount
determined under such paragraph for such respective
individual bears to the sum obtained by adding each
amount obtained by applying such paragraph to each such
individual.
``(B) Excess funds.--If an amount remains in the
CLASS Independence Fund after the Secretary makes the
refund described in paragraph (1), such amount shall be
transferred to the general fund of the Treasury.
``(d) Funds in Life Independence Accounts Retained by Enrollees.--
Notwithstanding the termination of the CLASS program under subsection
(a), an individual who has funds remaining in a Life Independence
Account established by the Secretary for such individual under
subparagraph (A) of section 3205(c)(1) may continue to use such funds
for the purposes described in subparagraph (B) of such section.''.
SEC. 6. CONFORMING AMENDMENTS.
Title XXXII of the Public Health Service Act, as amended by
sections 2 and 5, is further amended--
(1) in section 3204--
(A) in subsection (a)(1), by striking ``paragraph
(2)'' and inserting ``paragraphs (2) and (4)''; and
(B) in subsection (e)--
(i) in paragraph (1), by striking ``An
amount'' and inserting ``Subject to sections
3203(a)(4), 3208(c)(2), and 3212(a)(2), an
amount''; and
(ii) in paragraph (2), by striking ``The
Secretary'' and inserting ``Subject to sections
3203(a)(4), 3208(c)(2), and 3212(a)(2), the
Secretary'';
(2) in section 3208(d), in the first sentence, by striking
``Beginning January 1'' and inserting ``Subject to section
3212(a)(8), beginning January 1''; and
(3) in section 3209, in the first sentence, by striking
``The Inspector General'' and inserting ``Subject to section
3212(a)(9), the Inspector General''.
<all>
Introduced in House
Introduced in House
Referred to House Energy and Commerce
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Rules, 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.
Referred to House Rules
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