S. 1395 (112th): WAIVE Act

S 1395 IS

To ensure that all Americans have access to waivers from the Patient Protection and Affordable Care Act.

July 21, 2011

Mr. BARRASSO (for himself, Mr. ALEXANDER, Mr. KYL, Mr. WICKER, Mr. ROBERTS, Mr. INHOFE, Mrs. HUTCHISON, Mr. CORNYN, and Mr. GRASSLEY) introduced the following bill; which was read twice and referred to the Committee on Finance

To ensure that all Americans have access to waivers from the Patient Protection and Affordable Care Act.

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 ‘WAIVE Act’.

SEC. 2. FINDINGS.

Congress makes the following findings:

(1) As of July 15, 2011, the Department of Health and Human Services has approved 1,471 one-year waivers giving some Americans temporary relief from onerous annual benefit limit mandates included in the health care laws President Obama signed on March 23, 2010, and March 30, 2010 (Public Laws 111-148 and 111-152).

(2) As of July 15, 2011, these 1,471 one-year annual benefit limit waivers cover 3,200,000 Americans.

(3) Of the 3,200,000 Americans granted a one-year annual benefit limit waiver by the Department of Health and Human Services, approximately half (1,619,960) are union members.

(4) On June 14, 2011, the Government Accountability Office released a report titled ‘Private Health Insurance: Waivers of Restrictions on Annual Limits on Health Benefits’.

(5) The Government Accountability Office report proves millions of Americans had to seek waivers from the health care law’s annual benefit limit mandate in order to avoid double-digit health insurance premium increases.

(6) The Government Accountability Office report indicates the Department of Health and Human Services granted annual benefit limit waivers to unions, employers, and insurers whose applications projected significant premium increases of at least 10 percent or more.

(7) The Government Accountability Office report, and additional academic literature, shows that the Department of Health and Human Services was forced to grant special annual benefit limit waivers because certain employers, unions, insurers, and others cannot comply with the health care law’s new coverage mandates and continue offering health insurance to their employees.

(8) The Government Accountability Office data concludes premiums are going up as a direct result of the health care law, threatening private insurance coverage options and violate the promise that ‘you can keep what you have today, if you like it’.

(9) Independent analysis by the non-partisan Congressional Budget Office confirms that premiums will increase by $2,100 per year for families buying insurance on their own, while Administration officials repeatedly promised the American people their costs would go down by $2,500 per year.

(10) On June 17, 2011, the Department of Health and Human Services announced plans to terminate its arbitrary annual benefit limit waiver policy. Administration officials will stop taking waiver applications on September 22, 2011.

(11) While the Executive Branch did send millions of postcards advertising the health care law’s small business tax credit, it remains unclear if similar efforts are currently underway to inform small business owners about the new annual benefit limit waiver process and program termination.

(12) Any new business starting up after September 22, 2011, will not have an opportunity to request and secure an annual benefit limit waiver from the Department of Health and Human Services. Without a waiver, these employers may not be able to afford to offer any health insurance coverage to their employees at all.

SEC. 3. INDIVIDUAL PPACA WAIVERS.

(a) In General- An individual may apply for a waiver from one or more of the requirements of the Patient Protection and Affordable Care Act (or an amendment made by that Act or a regulation promulgated under that Act or amendment) by submitting an application to the Secretary of Health and Human Services (referred to in this Act as the ‘Secretary’).

(b) Requirements- An application submitted under subsection (a) shall include the following:

(1) The provision or provisions of the Patient Protection and Affordable Care Act (or an amendment made by that Act or a regulation promulgated under that Act or amendment) for which the waiver is being sought.

(2) A brief description of why compliance with the provision or provisions involved would result in--

(A) a decrease in access to benefits that are currently covered by a plan or policy in which the individual is enrolled; or

(B) an increase in premiums to be paid by the individual for such coverage.

(c) Completion of Process- The Secretary shall issue waivers within 30 days of the receipt of such application.

(d) Guidance- The Secretary shall issue guidance to individuals in how they can apply for and be granted a waiver under this section.

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