HR 4281 · 108th Congress 2003–2005, ended

Small Business Health Fairness Act of 2004

Introduced May 5, 2004 Originated House Sponsor Sam Johnson R-TX

Fact sheet

Latest action · May 13, 2004 Pursuant to the provisions of H. Res. 638, H.R. 4281 is laid on the table.

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

  1. IntroducedMay 5, 2004
  2. Passed HouseMay 13, 2004
  3. Passed SenateNot reached
  4. To the PresidentNot reached
  5. Became lawNot reached

Summary

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

Small Business Health Fairness Act of 2004 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) to provide for establishment and governance of association health plans (AHPs), which are group health plans whose sponsors are trade, industry, professional, chamber of commerce, or similar business associations, and which meet certain ERISA certification requirements. (Thus, through ERISA preemption of State laws, certified AHPs are exempted from State regulation of health insurance providers, including State consumer protection laws and State requirements for health care benefits to be offered by such entities, with certain exceptions.)

(Sec. 2) Establishes rules governing AHPs, including requirements relating to certification, sponsors and boards of trustees, participation and coverage, nondiscrimination, plan documents, contribution rates, benefit options, applications for certification, notice of voluntary termination, corrective actions, and mandatory termination.

Requires AHPs which provide health benefits in addition to health insurance coverage to maintain certain reserves and comply with other solvency requirements.

Directs the Secretary of Labor to apply for appointment, and carry out specified duties, as trustee of any insolvent AHPs which provide health benefits in addition to health insurance coverage.

Allows a State to impose a contribution tax on any AHP commencing operations in such State after the enactment of this Act. Sets forth limits on such tax, including reduction by the amount of any tax or assessment otherwise imposed by the State on specified other insurance related items maintained by the AHP.

Requires AHPs to include in their summary plan descriptions, in connection with each benefit option, a description of the form of any solvency or guarantee fund protection secured under ERISA or applicable State law.

Allows a certified AHP to exist in a State regardless of any State law that would preclude it.

Preempts State requirements for benefits to be offered by AHPs; but allows a State in which an AHP is domiciled to require the domiciled AHP to cover particular types of diseases and conditions. Allows health insurance issuers to offer coverage of the same policy type offered in connection with a particular AHP to eligible employers, regardless of whether such employers are members of the particular association and regardless of State law. Deems health insurance coverage policy forms filed and approved in a particular State in connection with an insurer's offering under an AHP as approved in any other State in which such coverage is offered when the insurer provides a complete filing in the same form and manner to the authority in the other State.

Makes inapplicable to certified AHPs certain current ERISA provisions which allow State regulation of multiple employer welfare arrangements (MEWAs). Revises ERISA preemption rules to permit State regulation of self-insured MEWAs providing medical care which do not elect to meet the certification requirements for AHPs.

Directs the Secretary to report to specified congressional committees by January 1, 2009, on the effect, if any, AHPs have had on the number of uninsured individuals.

(Sec. 3) Revises requirements for treatment of single employer arrangements. Allows two or more trades or businesses to be deemed a single employer if they are in the same control group offering medical care benefits, under specified conditions.

(Sec. 4) Provides for enforcement of AHP requirements, including criminal penalties for certain willful misrepresentations, issuance of cease and desist orders, and the responsibility of AHP boards of trustees for certain claims procedures.

(Sec. 5) Directs the Secretary, regarding the exercise of authority, to consult only with the recognized primary domicile State for an AHP.

(Sec. 6) Provides for transitional and other rules relating to treatment of certain existing health benefit programs.

Recorded votes 3

Newest first. Open one to see how every member voted.

Roll callQuestionResultDate
House 174Passed252–162May 13, 2004
House 173Failed196–218May 13, 2004
House 172Failed193–224May 13, 2004

Cosponsors 17

Members who signed on, in the order they did. Signatures ran from May 5, 2004 to May 11, 2004, with 4 there on the day it was introduced.

SeatCosponsorSigned on
D-CACalvin M. DooleyOriginalMay 5, 2004
R-OHJohn A. BoehnerOriginalMay 5, 2004
R-GAMax BurnsOriginalMay 5, 2004
D-NYNydia M. VelázquezOriginalMay 5, 2004
R-MOJo Ann EmersonMay 6, 2004
R-MICandice S. MillerMay 11, 2004
R-NCCass BallengerMay 11, 2004
R-CTChristopher ShaysMay 11, 2004
R-PAJames C. GreenwoodMay 11, 2004
R-AZJim KolbeMay 11, 2004
R-TNMarsha BlackburnMay 11, 2004
R-TXMichael C. BurgessMay 11, 2004
R-ILPhilip M. CraneMay 11, 2004
R-FLRic KellerMay 11, 2004
R-COScott McInnisMay 11, 2004
Show all 17 cosponsors

Actions 17

Everything that happened, newest first.

  1. May 13, 2004Considered under the provisions of rule H. Res. 638. (consideration: CR H2951-2960, CR 5/14/2004 H2967-2986)
  2. May 13, 2004DEBATE - Pursuant to House Resolution 638 the House proceeded with one hour of debate on the Kind amendment in the nature of a substitute.
  3. May 13, 2004DEBATE - The House proceeded with one hour of debate on H.R. 4281.
  4. May 13, 2004Floor summary: DEBATE - The House proceeded with ten minutes of debate on the McCarthy (NY) motion to recommit with instructions.
  5. May 13, 2004Motion to reconsider laid on the table Agreed to without objection.
Show all 17 actions

Related bills 5

Companion bills and other measures the record links to this one.

BillTitleRelationshipLatest action
S 545Small Business Health Fairness Act of 2003Related billMar 6, 2003
HRES 638Providing for consideration of the bill (H.R. 4279) to amend the Internal Revenue Code of 1986 to provide for the disposition of unused health benefits in cafeteria plans and flexible spending arrangements; for consideration of the bill (H.R. 4280) to impRelated billMay 12, 2004
HR 660Small Business Health Fairness Act of 2003Related billJun 20, 2003
HR 4275To amend the Internal Revenue Code of 1986 to permanently extend the 10-percent individual income tax rate bracket.Related billMay 18, 2004
HR 4279To amend the Internal Revenue Code of 1986 to provide for the disposition of unused health benefits in cafeteria plans and flexible spending arrangements, to improve patient access to health care services and provide improved medical care by reducing theRelated billMay 21, 2004

Subjects

Assigned by the Library of Congress. Policy area: Health.

Text 1

Each version as it was printed, newest first.

  1. May 5, 2004Introduced in House

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Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov.