MONTHLY ARCHIVES

Economic Challenges Provide Green Opportunity
June 30, 2010 6:07 PM | Jobs

 

On Monday, Chairman Levin wrote an opinion-editorial for The Hill on the need to create green jobs and technologies.  Chairman Levin writes:

The economic challenges facing our nation present us with great opportunity to rethink and retool how we build the economy and workforce of the 21st century.  Nowhere is this more evident than in the renewable energy and green economy.

Chairman Levin notes that events such as the BP oil spill in the Gulf of Mexico should force us to reconsider our dependence on fossil fuels for our transportation needs.  Additionally, that without action, the United States may not keep up with governments in China, Korea, and other nations who are moving forward in helping their industries dominate in green technologies.

If we are not aggressive about expanding our green manufacturing capacity, these manufacturing jobs will be created overseas, and the U.S. will become more reliant on products that are produced outside of our borders.

The U.S. took a good first step supporting domestic manufacturing in the Recovery Act, and we must now seize the opportunity to build on that investment and make crystal clear that the government is a full, active and effective partner in creating green jobs and technologies.

We must keep [up the] momentum through further incentives to manufacture electric and hybrid vehicle technologies here in the U.S.

 

In April, the Committee held a hearing on Energy Tax Incentives Driving the Green Job Economy, examining the effectiveness of current energy tax policy and looking at additional steps the Committee could take to continue spurring job growth in the green job economy.

Click here to watch Chairman Levin’s opening statement at the hearing.

Related: Witness Testimony Confirms Energy Tax Incentives are Creating Jobs as We Reduce our Dependence on Foreign Oil

- by Cameron Brenchley

 

W&M; Members Weigh in on Republicans' Vote to Deny Unemployment Benefits to Millions of Americans
June 29, 2010 7:20 PM | Income Security and Family Support, Unemployment

 

Democratic Members of the Ways and Means Committee are weighing in after Republicans voted down H.R. 5618, the Restoration of Emergency Unemployment Compensation Act, that would have restored and continued unemployment benefits for millions of Americans:
 
Ways and Means Committee Chairman Sander M. Levin (D-MI): "Republicans in Congress are clearly more focused on their short-term political standing than the immediate economic security of millions of Americans who have lost their jobs through no fault of their own and are unable to find work. While today’s vote is deeply disappointing, it is not altogether surprising given how Republicans have increasingly voted in lock-step against all measures to create jobs, strengthen our economic recovery and help the unemployed.
 
Income Security and Family Support Subcommittee Chairman Jim McDermott (D-WA): “I honestly don’t know how Republicans can go home to march in a July 4th parade next week knowing that they’ve voted to sever this lifeline for millions of families.  The same Republicans that had no problem helping President Bush turn our nation’s largest budget surplus into the nation’s biggest deficit are the very ones who have now miraculously discovered fiscal responsibility. Millions of families who have lost their benefits are trying to figure out how they are going to put food on the table tonight, and they have the Republican Party to thank.  While Republicans seem to think that it’s okay to tell every unemployed American that we don’t care what happens to them, I certainly do not.”
 
Health Subcommittee Chairman Pete Stark (D-CA): "While House Republicans vote down an extension of Unemployment Insurance, 250,000 Californians have already lost their benefits.  I wish that each of the members who voted no could answer the phones in my office and tell my constituents how they will pay their mortgages or put food on their tables."
Oversight Subcommittee Chairman John Lewis (D-GA): “I also find it morally reprehensible that my counterparts on the other side of the aisle are not fiscally conservative when it comes to tax cuts for the wealthiest 1 to 2 percent of Americans. It was a Republican Administration that took us from a major surplus to an unprecedented massive deficit. At that time we heard no calls for fiscal responsibility.”
Select Revenue Measures Subcommittee Chairman Richard E. Neal (D-MA): “Because of Republican intransigence and indifference, millions of Americans families are being denied emergency unemployment compensation. In my home state of Massachusetts, more than 24,000 people are struggling to make ends meet without these crucial benefits. Unfortunately, Congressional Republicans would rather play politics than help families who are hurting through no fault of their own. The time for partisanship is over. I urge my Republican colleagues to stand up for the American family, reject the special interests, and pass this important bill.”
 
Rep. Bill Pascrell (D-NJ): “Now is not the time for members of Congress to play politics while Americans struggle through this trying economy. What the nation needs now is steady governance to provide those seeking jobs the unemployment insurance benefits the need to help see them through to their next opportunity. If we’ve learned nothing else in this Congress, it’s that partisanship only hurts the American people. It is my hope that my colleagues will see the wisdom of providing for the greater good of all Americans.”  
 
Rep. Shelley Berkley (D-NV): “Nevada's unemployment rate went up last month. We are the highest in the country. Officially over 14%, probably closer to 20%, which means a fifth of the people living in the State of Nevada have no jobs. And the problem is, there are no jobs to have. When I hear people say ‘well, we shouldn’t extend unemployment benefits because people are going to get accustomed to being on unemployment.’ Not one of the people I represent that’s unemployed has come to me and told me what a picnic it is living on the brink with their unemployment benefits. You know what they are saying to me: find me a job Congresswoman, I want to work! Until this economy recovers, until people can go back to work, we have an obligation, a responsibility, to keep these families afloat.” 
 
Rep. Chris Van Hollen (D-MD): “I am disappointed that House Republicans joined Senate Republicans to block the extension of unemployment benefits to Americans who are out of work through no fault of their own. While there have been five consecutive months of job growth, much more work needs to be done to rebuild the economy and make up for the 8 million jobs lost. Extending these benefits is not only the right thing to do for these families, it will also help the economy and create jobs.  If individuals are unable to buy food and pay their mortgages or rent, the economy could slide back into recession. Our economic security should not be risked for short term political gain.”
 
Rep. Allyson Schwartz (D-PA):   “Just as America heads into economic recovery, Republicans continue to stand in the way of middle income families getting the help they need to regain their footing. This comes as no surprise as they have also voted against helping small businesses expand and hire new workers and against every proposal that Congress has considered to create jobs and grow the economy. Republicans continue to hold us back from moving our country in the right direction.” 

Click here for additional information. 

- by Lauren Bloomberg

 

Rep. Stark, Chair of the Subcommittee on Health, Reports on Health Reform Implementation
June 28, 2010 3:00 PM | Health

 

- by Rep. Pete Stark (D-CA)

Stark Bio Photo

Friends;

Earlier this year, Congress passed health care reform legislation that made crucial improvements to our nation’s health care system.  Even in the face of calls for repeal, the changes that were promised to the American people are being enacted and helping people.  Here are some provisions of the health care bill that are already keeping Americans insured and healthy.

• HELP FOR THE SICK: As of last month, almost all major insurance companies have agreed to stop rescinding their customers' health care when they fall ill.  A complete ban on this egregious practice will take effect for plan years starting after September.

• HELP FOR SMALL BUSINESSES: The IRS has started making small businesses aware that they may qualify for tax credits to provide their employees with health insurance.

• HELP FOR SENIORS: Seniors who hit the Medicare “donut hole” ARE receiving a one-time check for $250 to help offset the cost of their prescription drugs. In 2011, seniors will receive a 50 percent discount on brand-name drugs in the donut hole and a small discount on generic medications.  By 2020, we will have phased the “donut hole” out completely.

• HELP FOR YOUNG ADULTS:  Insurance companies have announced that they are allowing young adults to stay on their parents’ health plans until their 26th birthday. For plan years starting after September, this will be mandatory for all new health care plans.

• HELP FOR EARLY RETIREES:  Businesses have started receiving financial assistance to maintain coverage for early retirees.  This will help people who retire before they are Medicare-eligible – and who may face high costs for coverage – so that they can stay on their employer-provided plan until they can get on Medicare.

In addition, Americans will be able to experience further benefits of health reform in coming months, when more provisions of the law will become effective, including:

• HELP FOR THE UNINSURED: The law will create high-risk pools for those who have been uninsured for at least six months and have pre-existing conditions, giving at-risk Americans the opportunity to obtain affordable insurance.  

• HELP FOR CHILDREN: The law will prevent insurance companies from denying coverage to children with pre-existing conditions so that nothing stands in the way of providing our nation’s children the health care that they need.

• REPEAL OF LIFETIME LIMITS: The law will prevent insurance companies from setting any lifetime limits on coverage, so no American will face their insurance plan refusing to pay if medical treatments are too costly.

• RESTRICTIONS ON ANNUAL LIMITS: The law will restrict insurance companies’ annual limits on coverage, allowing Americans to receive the medical care they need without facing high out-of-pocket costs.

Reforming our health care system is a work in progress. Two weeks ago, my Subcommittee on Health held a hearing on reducing fraud, waste, and abuse in Medicare.  Health reform legislation provided new tools to reduce fraud, waste, and abuse in Medicare, and we are looking for even better tools to prevent, detect, investigate and prosecute Medicare misuse.

My colleagues on the Ways and Means Committee and I are dedicated to providing Americans with the best and most comprehensive health care system that we possibly can.  The recently passed health reform legislation is already helping us make great strides in that direction.

Be well,

Pete

You can learn more about the changes that have already taken place here and here.

 

The Week in Review
June 25, 2010 1:10 PM |

 

Washington’s hot and humid weather didn’t slow down Members of the Committee this week.  On Tuesday, the Administration announced several new consumer protections created under the Affordable Care Act.  Ways & Means Subcommittee on Health Chairman Pete Stark (D-CA) explained that "Thanks to health care reform, the federal government and state insurance commissioners now have better tools to hold insurance companies accountable for unjustified rate hikes."

On Wednesday, Oversight Subcommittee Chairman John Lewis (D-GA) responded to a new Treasury report on fraud in the first-time homebuyer program. Last year, the Subcommittee played a major role in revealing fraud in the homebuyer program, as well as introducing, and passing legislation, ensuring the IRS has the tools necessary to combat fraud.

On Thursday, the House passed legislation (H.R. 3962) that reverses a 21 percent cut in Medicare payments to doctors.  The bill is an important step in ensuring seniors continue to get the care they need, but Chairman Levin blasted Senate Republicans for obstructing  H.R. 4213 the American Jobs and Closing Tax Loopholes Act, a bill that includes Medicare physician payment provisions, as well as a number of important provisions that would extend critical unemployment benefits, and help boost job creation.

“With this filibuster, Senate Republicans are saying to the American people that they care more about their political futures than they do the daily lives of millions of Americans,” said Chairman Levin. “Senate Republicans should side with the American people, not with their party leaders, or the tea party, and allow a straight up or down vote on the comprehensive jobs bill in the Senate.” 

Ways & Means Committee Member Shelley Berkley (D-NV) stated that she was “shocked that Republican Senators were unwilling to put aside their partisan beliefs and stand-up with the American people so that those who are unemployed can take care of their families.”

Picture of the Week

monkey.jpg

On a lighter note, Wednesday,Ways & Means Committee Member Joseph Crowley (D-NY) grabbed his guitar to jam with Rep. Tom Rooney (R-Fla.) on the drums, Rep. Ted Deutch (D-Fla.) on keyboard, and Monkee band member Micky Dolenz on lead guitar. (Photo Credit: Marty Machowsky via The Hill

- by Cameron Brenchley

 

Chairman Levin to Senate Republicans: Stop Putting Politics Before People
June 24, 2010 5:54 PM | Jobs, Levin, Unemployment

 

Senate inaction leaves 1.2 million unemployed workers without benefits by the end of the week

During debate on legislation to block a 21 percent cut in Medicare payments to doctors, Chairman Levin blasted Senate Republicans for obstructing H.R. 4213, the American Jobs and Closing Tax Loopholes Act, job-creating legislation which includes both Medicare physician payment provisions and an extension of critical unemployment benefits for millions of Americans who have lost their job through no fault of their own: 

“They [Senate Republicans] are willing to put politics before people, and they are leaving millions of unemployed workers thrown out of work by this recession through no fault of their own, without their unemployment insurance benefits,” said Levin. “Instead, they seem willing to let loopholes that permit jobs to be shipped overseas continue to remain open. Republicans, in a word are saying to the American people that they care more about their political futures than they do the daily lives of millions and millions of Americans. We will not let that stand. We will continue to stand on is the side of seniors and the physicians who treat them, on the side of unemployed workers and their families. On the side of millions who are looking for jobs. On the side of youth seeking employment. And on the side of those who would benefit from tax measures and bond measures that are supporting millions of jobs.



- by Lauren Bloomberg

 

Another Poll Confirms Support For Affordable Care Act Is On The Rise
June 23, 2010 1:43 PM | Health

 

Health Care Reform Image

While Republicans claim that Americans strongly oppose the new Affordable Care Act, a recent Gallup poll shows that the law is becoming more popular among Americans. The poll shows a 7 percent increase in the law’s approval among respondents in the 18-29 and 50-64 age groups, and even a 7 percent uptick in approval among Republicans.

This positive news comes on the heels of an AP-Gfk poll last week that also showed an increase in public approval.  “It does seem we're looking at a trend,” said Washington Post columnist Ezra Klein in his article analyzing the poll results.

It is not surprising that more and more Americans support the Affordable Care Act.  Since President Obama signed the law just over 90 days ago, small businesses have received tax credits so they can provide quality health care for their employees, seniors in the “donut hole” have begun to receive one-time checks of $250 to help pay for prescription drug costs, and many parents have been able to keep their children under 26 years of age on their health plans. 

Click here for more immediate benefits under the Affordable Care Act.  

- by Matthew Beck

 

Congress, Administration Seek to Strengthen IPR Enforcement
June 22, 2010 6:05 PM | Trade

 

President Obama and Vice-President Biden recently outlined a strategic plan to protect and enforce U.S. intellectual property rights, including protection of patents, copyrights, trade secrets, and trademarks.

The plan seeks to ensure efficiency and coordination between intellectual property enforcement coordinators at the federal, state, and local levels and enforce our intellectual property rights internationally by combating websites and other entities that violate our intellectual property rights. In addition, it attempts to prevent illegal products from entering the country by securing the supply chain by supporting law enforcement agencies and encouraging  voluntary cooperation from those in the private sector. Finally, it pledges that the government will lead by example in making sure that they do not purchase illegal products, and will be transparent with its development and implementation of policies.

 “[W]e’re going to aggressively protect our intellectual property,” President Obama said regarding the issue. “Our single greatest asset is the innovation and the ingenuity and creativity of the American people. It is essential to our prosperity and it will only become more so in this century.”

The Ways and Means Committee shares the Administration’s dedication to defending intellectual property rights, particularly with regard to U.S. – China trade.  At last week’s Full Committee hearing on China’s trade and industrial policies, the Committee heard testimony from Robert W. Holleyman II of the Business Software Alliance, who spoke about China’s frequent use of illegal software and its illegal production, and sale, of hardware.  Mr. Holleyman informed the committee that Chinese companies pay for less than 30% of used software and that the Chinese government does not sufficiently enforce existing regulations, and recommended stricter enforcement against software piracy in order to defend our essential intellectual property rights. During questioning, Holleyman discussed the importance of the Administration and Congress working together to develop a comprehensive approach to addressing the issue of intellectual property rights, rather than dealing with the issue on a case-by-case basis. The Ways and Means Committee is in the process of developing customs reauthorization legislation, which is expected to include provisions on intellectual property enforcement at our borders, and working with the Administration to make sure these provisions support our IPR needs.  

- by Matthew Beck 

 

Protecting Patient Rights and Holding Insurance Companies Accountable
June 22, 2010 4:33 PM | Health

 

Earlier today President Obama announced that several new consumer protections included in the Affordable Care Act are going into effect.  The new regulations will eliminate discriminatory practices that for too long have prevented Americans from receiving the care they deserve.  President Obama explained: 

“…today, I’m announcing that the Departments of Health and Human Services, Labor and Treasury are issuing new regulations under the Affordable Care Act that will put an end to some of the worst practices in the insurance industry, and put in place the strongest consumer protections in our history -- finally, what amounts to a true Patient’s Bill of Rights.

“This long-overdue step has one overriding focus, and that’s looking out for the American consumer.  It’s not punitive.  As I said when I met with the insurance executives, it’s not meant to punish insurance companies.  They provide a critical service.  They employ large numbers of Americans.   And in fact, once this reform is fully implemented a few years from now, America’s private insurance companies have the opportunity to prosper from the opportunity to compete for tens of millions of new customers.  We want them to take advantage of that competition.”

Following President Obama’s remarks, Ways & Means Chairman Sander Levin stated that:

“The regulations announced today and the landmark reforms in the Affordable Care Act usher in a new era where the priority is delivering quality care to patients.  Health reform enacted long overdue consumer protections and gave Federal and State governments tools to hold insurance companies accountable, preventing them from socking patients with unjustified rate increases.”

How These New Rules Will Help You (from HealthReform.gov):

  • Stop insurance companies from limiting the care you need. For most plans starting on or after September 23, these rules stop insurance companies from imposing pre-existing condition exclusions on your children; prohibit insurers from rescinding or taking away your coverage based on an unintentional mistake on an application; ban insurers from setting lifetime limits on your coverage; and restrict their use of annual limits on coverage.

  • Remove insurance company barriers between you and your doctor. For plans starting on or after September 23, these rules ensure that you can choose the primary care doctor or pediatrician you want from your plan’s provider network, and that you can see an OB-GYN without needing a referral. Insurance companies will not be able to require you to get prior approval before seeking emergency care at a hospital outside your plan’s network. These protections apply to health plans that are not grandfathered.

Click here for a fact sheet from the Administration.

Click here for additional information about the Affordable Care Act.


- by Cameron Brenchley

 

AP-GfK POLL: Shows “significant” shift in public support for Health Reform
June 17, 2010 1:21 PM | Health

 

 
The Associated Press (AP) yesterday released a poll on the recently-enacted health reform law showing “the strongest backing for the health care plan since the AP-GfK poll began asking in September,” with 45 percent in favor (up from 39 percent last month). 

Since President Obama signed the Affordable Care Act in March, critical benefits helping American seniors, small businesses, workers, young adults and health care professionals have already taken effect.
 
The new poll indicates that Americans are starting to see, and appreciate, how health reform will positively impact their lives.

Notable shifts in approval since May:

  •  30-49 year-olds: from 35 percent to 49 percent
  •  Men: from 36 percent to 46 percent
  • Republicans: from 8 percent to 17 percent
AP noted “The uptick among Republicans comes even as party leaders are calling for the law's repeal.”

“‘If we can insure more people across the United States and get the cost of health care down, I think that's a better thing,’ said [electrical contractor Kerry] Eisley, 43, a Republican who supports the health care plan, though not a single GOP lawmaker voted for it.”

 

-by Lauren Bloomberg 

 

Rep. Danny Davis Discusses Responsible Fatherhood Programs
June 17, 2010 12:47 PM | Income Security and Family Support

 

-by Rep. Danny K. Davis (D-IL)
 
Davis Bio Pic.JPG
There is broad agreement that fathers matter in the upbringing of children.  Studies show that children raised in the absence of a father are more likely to live in poverty.  Children whose fathers interact with them on a regular basis in such daily activities as helping with homework, enjoying recreational opportunities and sharing meals have higher self-esteem and are better learners.
 
Children raised in the absence of a father are more likely to engage in risky behaviors such as early sexual activity, as well as drug and alcohol abuse.  Statistics demonstrate that boys raised in fatherless homes are more likely to become violent. Fathers' positive involvement in their children's lives and men's positive involvement in their communities are irreplaceable contributions to the strength of our nation.
 
No one argues that there is any one model of family structure but the elimination of government barriers to healthy relationships and healthy marriages, the promotion of cooperative parenting skills and the fostering of economic stability and the provision of incentives to non-custodial parents to fulfill financial and emotional support responsibilities are clearly in the interests of millions of children.
 
Put differently, optimal policy builds and reinforces fathers' work attachment, family attachment and the knowledge, beliefs, and behaviors necessary for these to be attained and sustained.
 
Intervention is imperative for the well-being of our children, as well as America's global competitiveness. The gradual but persistent scaling back of federal support for families living below the poverty line will not yield the results we need. The lives of poor, low-income Americans, of whom Black families constitute a disproportionate share, hang in the balance. If their lives hang in the balance, our nation's future does as well. The return on the public investment in struggling families is nothing short of a stronger nation - for generations to come.

 

Committee Examines China's Trade & Industrial Policies
June 17, 2010 12:13 PM | Trade

 

Trade Hearing Photo

Yesterday, the House Ways & Means Committee held a hearing on issues related to China’s trade and industrial policies - policies which Chairman Sander Levin (D-MI) described as having “The effect of tilting the playing field to favor Chinese companies and against U.S. companies, workers, and farmers.”

Tensions have been rising steadily over these controversial economic policies, especially regarding the issue of China’s currency. Now, many in Congress are calling for action, whether it comes from the Congress, the Administration, or China itself. As Chairman Levin said in his opening remarks, “If China does not act and the Administration does not respond promptly thereafter, Congress will act.”

Chairman Levin cited China’s exchange rate policies, their “indigenous innovation” initiative, discriminatory product standards, and manipulation of export flows as especially contentious and “often in clear violation of China’s WTO obligations.”

Committee Members, Republicans and Democrats alike, reviewed testimony from three panels of witnesses on China’s economic policies, working toward a shared goal of figuring out “how to put [our trade relationship] on a healthier, more sustainable, and mutually beneficial footing.”

An article in today’s The New York Times offers a review of the hearing and the importance of China’s trade policies in the global economy: http://nyti.ms/cBAQ5F

- by Matthew Beck

 

Republican Motion would decrease health coverage, increase premiums
June 16, 2010 11:43 AM | Health, Levin

 

The Affordable Care Act ensures that all Americans have access to quality, affordable health care through landmark reforms to the system and the shared responsibility of businesses, the government and individuals.  The new law will provide coverage to 32 million more Americans while reducing the deficit by $143 billion over the next ten years, with $1.2 trillion in additional deficit reduction in the following 10 years.

However, Congressional Republicans continue calling for the repeal of this historic legislation.     
 
Yesterday, House Republicans offered a “Motion to Recommit” on unrelated legislation to repeal the shared responsibility provision in the Affordable Care Act.  According to the Congressional Budget Office (CBO), the House Republicans’ motion would increase the number of uninsured Americans by 16 million and increase premiums by an estimated 20 percent.  The motion was defeated by a vote of 187-230
 
Chairman Levin led the effort on the House floor to defeat the motionstating, “Individual responsibility is the cornerstone of health reform to ensure that every American has affordable health care coverage…This is nothing more than a disingenuous political stunt to undermine health reform.”  
 

Click here for more about the individual responsibility provision (Center for American Progress)
 
- by Cameron Brenchley

 

HIGHLIGHTS: Hearing on reducing fraud, waste and abuse in Medicare
June 15, 2010 4:56 PM | Health, Oversight

 

 

Health Subcommittee Chairman Pete Stark (D-CA) and Oversight Subcommittee Chairman John Lewis (D-GA) today held a joint hearing to examine the Administration's efforts to combat fraud, waste, and abuse in Medicare.  Here are some highlights:
 
Rep. Pete Roskam (R-IL) stated that reducing Medicare fraud, waste, and abuse is a bipartisan issue:
 
ROSKAM: "What we can do I think, is to come together as a Committee and say 'You know what?  This is not about donkeys, this is not about elephants.  This is not about liberals, this is not about conservatives.  This is about being smart, and using the technology that is available to us, investing in it, and then deploying that to the benefits of the taxpayers and the seniors that we're here to protect.'"
 
 

 

Rep. Lloyd Doggett (D-TX) and Lewis Morris, Chief Counsel, Office of Inspector General, U.S. Department of Health and Human Services, discuss holding executives of companies that commit fraud accountable:

 

 
DOGGETT: "We have faced some major Medicare fraud from legitimate Fortune 500 companies that has amounted to more money being stolen from this system than from all these fly-by-night operators put together in one year.  I think that is a matter for us to look at, as well as some of the ways that the Medicare system is threatened by practices that are legal."
 
MORRIS: "If I could just offer one thought to that effect, we've considered how to change the approach that corporate America takes to the integrity of our system.  We think that one of the challenges we need to address is having executives understand that they will be held personally accountable for schemes that are then hatched and pushed downstream.  To that end, we've offered some technical assistance that would allow us to exclude from the Medicare and Medicaid programs managing employees that are behind these schemes.  Although there are challenges to building a criminal case against a high-level executive -- there's a lot of plausible deniability built into these large companies -- it's an area where we and our partners at the Department of Justice are focusing on, because we recognize that the way we are going to change corporate cultures is by focusing on individuals.  I think you're going to see in the coming months through our efforts and our partners at the Department of Justice different approaches so that Fortune 500 companies understand that they will be treated the same way as anyone else who abuses our program."
 
DOGGETT: "Well that's extremely important and I salute your efforts.  And as you do it, if you find any ways that we need to change the laws to facilitate your efforts, I think that many of us would like to do that."
 
 

 

Rep. Xavier Becerra (D-CA) and Edward N. Siskel, Associate Deputy Attorney General, U.S. Department of Justice, Chicago, Illinois, discuss how fraudsters prey on vulnerable populations:

 

 
BECERRA: "What we're finding the more you all gather this data and get it to us, is not so much that fraudsters are targeting the Medicare program or the Medicaid program, as opposed to a private insurance program.  It's that they're targeting seniors, older folks, and the poor, or those who are less sophisticated and educated about how to defend themselves against the abuse and the fraud."
 
SISKEL: "The fraudsters don't distinguish between public and private programs.  They're willing to steal from anyone.  So we have to go after the fraud wherever it occurs... these fraudsters are willing to go after our most vulnerable population, and that's why we are so committed to going after them wherever it takes place, in whatever program or private sector provider they're preying on."
 
 

 

Chairman Pete Stark (D-CA) asks Lewis Morris about the benefits of using health IT to combat fraud:

 

 
STARK: "If we had a more universal information technology program in place, would it help in your efforts?"
 
MORRIS: "I think that is one of the things we're striving for, is to have a set of standards that would allow doctors, hospitals, and suppliers all to use the same media to exchange information.  It would improve efficiencies, it would improve accuracy, you wouldn't have to worry about whether a physician's script was misread and that the wrong drug was provided.  I think it would also help us in the fight against fraud and abuse.  It would give us a large amount of data which we then could data-mine to identify aberrant practices and outliers.  So I think the short answer is having a unified electronic health record is powerful."
 
 

 

Lewis Morris discusses the importance of having providers cooperate with efforts to combat abuse:

 

 
MORRIS: "We need the provider community to understand that embracing compliance measures; doing internal efforts to ensure that the claims are going out correctly; that their billing people are properly educated; that they take responsibility for bringing overpayments back to our program; is part of their obligation to be a good partner with us."
 
For more information on the hearing, please visit: http://go.usa.gov/3w9
 
For more information on what the Affordable Care Act does to combat fraud, waste, and abuse in Medicare, please visit: http://go.usa.gov/3wI
 

 -by Lauren Bloomberg

 

Treasury Report: Most TARP Recipients’ Unpaid Federal Taxes Have Been Paid
June 14, 2010 3:54 PM | Oversight

 

On March 19, 2009 Ways and Means Oversight Subcommittee Chairman John Lewis (D-GA) held a hearing to review the Troubled Asset Relief Program’s (TARP) use of taxpayer money. To receive TARP money from the Department of Treasury, institutions were required to sign a contract stating that they had no material unpaid Federal taxes. However, Chairman Lewis revealed at the hearing that out of the top 23 TARP recipients, 13 of them owed more than $220 million in unpaid Federal taxes, and called for a comprehensive audit of the program.

 
The results of the audit were released today in a report from the Treasury Inspector General of Taxation Administration (TIGTA).  The report reveals that 130 of the 558 TARP recipients had unpaid taxes, totaling $530 million, at the time they signed the agreements.  Since the issue was brought to light at the hearing, approximately 97 percent of the $530 million unpaid taxes were paid by December 2009.
“I thank TIGTA for examining this issue,” said Rep. John Lewis (D-GA), Chairman of the Ways and Means Oversight Subcommittee.  “It is important for taxpayers to know that the Congress and the Administration are working together to oversee the TARP recipients.  To maintain public confidence, we must ensure that those who benefit from federal programs timely pay their fair share of taxes.”
Click here to read the report.
- by Lauren Bloomberg

 

The Week Ahead
June 14, 2010 12:43 PM |

 

We have a busy week on the Ways and Means Committee beginning with two subcommittee hearings on Tuesday. At 10:00 AM the Subcommittees on Health and Oversight are holding a joint hearing on Reducing Fraud, Waste and Abuse in Medicare.   The hearing will focus on prevention, detection, investigation and prosecution of Medicare fraud, waste, and abuse at the Centers for Medicare and Medicaid Services, the Health and Human Services Office of Inspector General and the Department of Justice.
 
At 2:00 PM the Subcommittee on Select Revenue Measures will hold a hearing on Regulated Investment Company (RIC) Modernization.   In announcing the hearing Subcommittee on Select Revenue Measures Chairman Richard Neal (D-MA) explained: “With more than 50 million families, or almost half of all households investing in mutual funds, we should make sure the tax code does not create obstacles for regulated investment companies (RIC’s). This hearing will explore ways to simplify and modernize current IRS rules, making day-to-day operations of RIC’s less onerous."
 
On Wednesday at 10:00 AM, the full committee will hold a hearing on China’s Trade and Industrial Policies. The hearing will examine overall trends in China’s trade and industrial policies, as well as several specific examples of how China appears to be embracing mercantilism and “national champions” over a market-based model of economic development.
 
The Subcommittee on Income Security and Family Support will hold a hearing on Thursday at 10:00 AM to Review Responsible Fatherhood Programs. The hearing will focus on the effectiveness of Responsible Fatherhood Programs in improving the relationship between non-custodial parents and their children, as well as their ability to provide financial support.    
 
For the most up-to-date information on the Committee on Ways & Means subscribe to our RSS Feed, Facebook, Twitter, and YouTube Channel.
 
- by Cameron Brenchley 

 

Q&A;: McDermott discusses unemployment insurance
June 11, 2010 2:57 PM | Unemployment

 


mcdermott.jpgIncome Security and Family Support Subcommittee Chairman Jim McDermott (D-WA) answers some questions about unemployment insurance:

Q: Who can receive unemployment insurance benefits?
 
JM: Unemployment insurance is targeted very specifically to workers who lose their jobs through no fault of their own, can meet certain prior wage requirements, and are currently searching for work. Each State sets its own eligibility criteria within broad Federal parameters, but all eligible workers have had taxes paid into the unemployment insurance (UI) system on their behalf and have a significant work history.
 
Q: How did the Recovery Act improve the unemployment insurance system?
 
JM: The Recovery Act provided States up to $7 billion in total incentives for enacting specific   reforms designed to increase UI coverage among low-wage and part-time workers—who are more likely to be female—and to encourage UI benefits for workers in approved job training programs. It also provided financial assistance to help States cover administrative costs and added a Federally-funded $25 to every weekly UI check. The average UI benefit, $309 per week, equals only 74 percent of the poverty level for a family of four, so an additional $25 can make a significant difference when you have hungry mouths to feed.

Q: What is the role of the Federal government in the unemployment insurance system?
 
JM: The Federal government pays for the administration of the UI system at the State level and provides loans to States whose accounts have become too depleted.  States set most of the basic rules such as benefit levels, employer tax rates to fund regular benefits, and how to determine eligibility within certain broad Federal parameters.  However, the recession has demonstrated how woefully unprepared State trust funds were to weather a significant increase in UI claims and has demonstrated a need for Federal leadership to ensure that States have adequate reserves in the future. 
 
In times of significantly high and prolonged unemployment, the Federal government has typically funded additional weeks of emergency unemployment benefits.  During the current recession, the Federal government has stepped in so that unemployed workers in especially hard hit States can receive a maximum of 99 weeks of UI benefits, up to 73 of which are generally funded by the Federal government. 
 
Q: How do we pay for unemployment insurance benefits?
 
JM: UI benefits are almost entirely funded by either Federal or State taxes on employers.  The Federal Unemployment Tax (FUTA) is capped at 6.2 percent on the first $7,000 earned by each of their employees to cover administration costs of the UI system in all States, a share of extended benefits, and can be used to cover loans to states.  Through a credit available in every State that is fully compliant with Federal UI laws, the 6.2 percent rate typically falls to 0.8 percent on this wage base, or a maximum of $56 per worker per year.
 
State Unemployment Tax (SUTA) rates vary from State-to-State and are used to pay out direct benefits to unemployed workers.  Since most States didn’t have enough reserve funding to pay out benefits, the Federal government has made significantly more loans to States, and has also assumed the cost of emergency benefits beyond 26 weeks. 
 
Q: Why should we be particularly concerned about long-term unemployment?
 
JM: Unemployment insurance is a lifeline, and when it runs out, people are often forced to spend their savings and wipe out their 401 (k) plans just to stay afloat.  The long-term unemployed are also at great danger of losing their homes and adding to the foreclosure crisis. Some people—people who were making $60,000 salaries just a few years ago—may find themselves homeless or hungry. The longer people are unemployed, the more their problems compound, and the more it will cost our country.  Research has shown that workers who experience long-term unemployment will live less healthy lives, their children will do worse in school, their earnings may never return to what they once were, and many are even expected to have shorter life expectancies. We are talking about hard-working families who play by the rules, some of whom have applied for hundreds of jobs to no avail. Even under the most optimistic scenarios for our economy, it will take years to rebound to a pre-recession labor market and sadly, the long-term unemployed are often the last to be hired by employers.
 
Q: What do you hear from unemployed workers back home?
 
JM: Nobody wants to be on unemployment insurance, and that is what I hear over and over again not only from my constituents, but from callers across the country.  Feeding a family on $15,000 per year and responding to job posting after job posting is nobody’s idea of living the high life.  What is most difficult to hear are accusations from those opposed to extending benefits that UI prevents people from going back to work.  It simply isn’t true.  UI benefits, on average, replace less than half a worker’s prior wages, so there is plenty of incentive to look for new work and discontinuing UI will not miraculously create jobs—the supply must first be there.  In fact, expert after expert has found that expanded UI during this recession actually saves or creates more jobs than virtually any other policy.
 
Q: How does unemployment insurance save and create jobs?
 
JM: A number of states use their UI systems for innovative programs such as work share to prevent lay-offs.  Work share programs allow employers to reduce the hours of their employees while workers receive proportionate unemployment benefits for those reduced hours, thereby lessening the impact on them and their families.  For example, instead of eliminating 20 percent of the work force, a business may enter into a voluntary agreement with its workers to reduce hours by 20 percent, i.e. one day per week. 
 
For workers that have already been laid off, unemployment insurance is a modest safety net that provides a minimal cushion as they search for a new job.  If employees are not forced to take the first job that comes along, but instead can take a job better suited for their individual skills, they are more likely to stay connected to the labor market in the long-term.  Additionally, many States use their UI systems to allow workers to go back to school or approved training programs so they may sharpen and upgrade their skills to find better jobs in the future.
 
It is also essential to remember that UI is one of the most effective ways to spur economic growth during a recession.  Unemployed workers have often depleted their savings and immediately put this money back into the economy thereby creating a ripple effect.   Local businesses and communities would suffer enormously if unemployed workers were no longer able to meet their basic needs and purchase essential goods and services.  It’s estimated that every dollar spent on unemployment insurance benefits provides $1.64 in economic stimulus.
 
-by Lauren Bloomberg

 

 

Build America Bonds, Spurring Productive Investment, Job Creation
June 11, 2010 1:38 PM | American Recovery & Reinvestment Act, Build America Bonds, Jobs

 

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Earlier this week Tim Fernholz of The American Prospect had a great article highlighting how successful the Build America Bonds program has been since its inception under the American Recovery and Reinvestment Act.  Fernholz states:

 
 [Build America Bonds] is one of the most successful programs of the American Recovery and Reinvestment Act, spurring productive investment, job creation, and creating a more progressive and democratic method of local finance.”
 
Fernholz responds to recent criticism from Republicans in Congress who have termed the Build America Bond program a “bailout,” by stating that “the idea that this is any kind of bailout is misguided at best.
 
Congress developed the Build America Bonds (“BABs”) program to provide State and local governments with the option of accessing the corporate taxable bond market. Pension funds, tax-exempt organizations, and foreign investors make the corporate taxable bond market broader and deeper than the tax-exempt municipal bond market, which is dominated by banks and other taxable investors.
 
As of May 3, 2010, State and local governments throughout the nation have accessed the corporate taxable bond market through the BABs program to finance more than $97 billion in infrastructure projects. The BABs program has helped issuers as small as the City of Clarion, Iowa (pop. 2,968) raise $1 million of funding for sewer improvements and as big as the New York Metropolitan Transit Authority raise $750 million for transit improvements.
 
Click here for state-by-state information on Build America Bonds Issuances through May 3, 2010.

The House recently passed H.R. 4213 The American Jobs & Closing Tax Loopholes Act of 2010 which would extend the popular Build America Bonds program, which has not only allowed State and local governments to invest more than $97 billion in infrastructure projects nationwide but has also supported more than 1.7 million jobs nationwide.

 by Cameron Brenchley

 

 

Welcome to the Blog
June 11, 2010 1:24 PM |

 

by Sandy Levin

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Welcome to the new blog of the Ways and Means Committee.  I hope you’ll find this a useful resource to track the work of the Committee and its Members.

For those of you unfamiliar with the Ways and Means Committee, I’d like to just briefly introduce it.  Ways and Means plays a vital role on critical issues facing American families including tax, trade and economic growth policies and entitlement spending, including Social Security, Medicare, welfare and unemployment compensation.  The Committee currently consists of 41 Members who serve across the Committee’s Subcommittees.
 
The blog will provide running commentary on the work of the Committee including updates on legislation we are considering and when hearings are scheduled, as well as articles that may be published about the Committee’s work and video and pictures of Committee Members in action.  In addition, different Members of the Committee will be posting sharing their thoughts on the relevant issues of the day.
 
Thank you for your interest in please stay in touch!