Medicare, cybersecurity, favors for banks, mortgages, IRS bullying, a tax cut for the rich, and a couple of good ideas are highlighted from the law and bills that passed Congress in April.

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Laws

H.R. 2: Medicare Access and CHIP Reauthorization Act of 2015

Sustainable Growth Rate (SGR): Enacted in 1997, the SGR paid doctors for Medicare patients based on the growth in gross domestic product (GDP). If Medicare costs increased more than GDP, doctors payments were cut across the board. According to the American College of Physicians, this formula for payment has meant that the Medicare payment rate to doctors is essentially the same as it was in 2001 and cuts have been postponed so many times that doctors’ payments would have been cut by 21% if this bill was not signed into law by April 1.

This new law:

• Repeals the Sustainable Growth Rate formula for Medicare payments to doctors.
• Increases payments to doctors by 0.5% through 2019 while the payment rate transitions away from a pay-per-service model.
• The new system will be based on scores assessed by a “Merit-based Incentive Payment System” which will be created by the Secretary of Health and Human Services which will go into effect on January 1, 2019.
  • A list of “quality measures” will be posted every November and doctors can choose which one’s will be used in their performance assessments.
  • Doctors will be rated and paid based on a performance score from 0 to 100, which will take improvement into account starting in the second year of the program.
  • The GAO will report on the effectiveness of the system by October 1, 2021.
• An advisory committee will be created to propose alternative payment models, which will be lump sum payments to group practices and medical homes.
• Sets a goal for Medicare records to be electronic nation-wide by December 31, 2018.
• Extends a bunch of existing Medicare programs, including the Children’s Health Insurance Program (which covers low income kids whose parents make too much for Medicaid) for two years.
• Doubles the length of Medicare administrator contracts from five to ten years.
• Expands nationally a prior authorization requirement for “repetitive scheduled non-emergent ambulance transport”
• Prohibits the printing of social security numbers on Medicare cards
• Pays for the new system by…
  • Denying access to policies with no out of pocket costs to people who enter Medicare after January 1, 2020. For all future beneficiaries, they will have to pay at least $147 per year (the cost of the Medicare Part B deductible).
  • Increasing the premiums for relatively high income individuals.
    • People who have a gross income between $133,501 and $160,000 ($267,000 and $320,000 for a couple) will pay a 65% premium instead of 50%, and people above that will pay an 80% premium rate. This would increase with inflation beginning in 2020.
  • Has a huge increase in the levy that the Treasury Department can impose on tax delinquent service providers, increasing it from 30% to 100%, effective on October 16, 2015.
  • Will have auditors distribute information about improper payments to help reduce the number of them.
  • Creates a paper-free option for Medicare notices, saving mail fees.
• The effect this bill will have on the budget will not be counted.
• The Congressional Budget Office (CBO) estimates this bill will increase the budget deficit by $141 billion.
• Passed 392-37 in the House and 92-8 in the Senate
• Sponsored by Rep. Michael Burgess of Texas
• 95 pages

Bills

H.R. 1731: National Cybersecurity Protection Advancement Act of 2015

For reference, here’s the text as of March 2015 of the Homeland Security Act, which is amended by this bill.

This bill:

• Adds “private entities” to the list of groups that will be part of the National Cybersecurity and Communications Integration Center, which coordinates information sharing between the Federal government and other entities.
• Adds new groups to the list of who will be included in the National Cybersecurity and Communications Integration Center who will coordinate with all sizes of businesses.
• Expands the type of information that the National Cybersecurity and Communications Integration Center will share between the Federal government, local governments, and private sector.
• Authorizes the National Cybersecurity and Communications Integration Center to share information internationally.
• Requires the government and businesses to use existing technology to “rapidly advance” implementation of “automated mechanisms” for sharing between the National Cybersecurity and Communications Integration Center and Federal agencies.
• Participation by non-Federal entities will be voluntary.
• Agreements that exist before this bill is signed into law will be deemed compliant with this law.
• All participating entities need to take “reasonable efforts to remove information that can be used to identity specific persons”. There’s no listed punishments if they don’t.
• The Under Secretary for Cybersecurity and Infrastructure Protection will create policies for governing the use of information shared with the National Cybersecurity and Communications Integration Center 180 days AFTER the bill becomes law. He/she will also be responsible for creating “sanctions” for government employees who disregard his/her privacy policies.
• Private entities that share information will have immunity from lawsuits, if they share information according to this law.
• If the Federal government breaks this law, it will have to pay the person actual damages or $1,000, whichever is higher, plus attorneys fees. There is a two year statute of limitations.
• This law will trump state laws that limit information sharing.
• The law would sunset 7 years after enactment.
• Passed 355-63 in the House
• Sponsored by Rep. Michael McCaul of Texas
• 60 pages

H.R. 1560: Protecting Cyber Networks Act

• Contains the text of H.R. 1731: National Cybersecurity Protection Advancement Act
• Within 90 days of enactment, the Director of National Intelligence must develop procedures for sharing classified “cyber threat indicators” with “non-Federal entities”
• Allows cybersecurity monitoring of government systems to be privatized
• Allows “non-Federal entities” to share information to with anyone other than the Defense Department.
• The entity sharing information must “take reasonable efforts” to remove personally identifiable information on people “not directly related” to the cybersecurity threat.
• The President will develop polices governing what happens to information received by the Federal Government, within 90 days of the bill becoming law.
• The Attorney General will create policies relating to privacy and civil liberties, within 90 days of the bill becoming law.
• A new branch, with 50 or less employees, will be created within the Office of the Director of National Intelligence called the Cyber Threat Intelligence Integration Center, which will “serve as the primary organization within the Federal Government for analyzing and integrating all intelligence possessed or acquired by the United States pertaining to cyber threats.”
• Information shared with the government is exempt from public disclosure.
• Information given to the government “shall not be subject to a rule of any Federal department or agency or any judicial doctrine regarding ex parte communications with a decision-making official.”
• The government can keep and use information given to it to investigate, prosecute, prevent or mitigate a threat of “death or serious bodily harm or an offense arising out of such a threat” and to investigate, prosecute, prevent or mitigate a threat to a minor. The information can also be used to prevent, investigation, disrupt, or prosecute fraud, unauthorized access to computers and transmission of information taken from it, “serious violent felonies” including murder, manslaughter, assault, sexual abuse, kidnapping, robbery, carjacking, extortion, firearms use, firearms possession, or attempt to commit any of these crimes, espionage including photographing or sketching defense installations, and theft of trade secrets.
• Passed 307-116 in the House
• Sponsored by Rep. Devin Nunes of California
• 121 pages

H.R. 650: Preserving Access to Manufactured Housing Act of 2015

• Changes the definition of “Mortgage originator” to exclude mobile home retailers who take mortgage loan applications, negotiate loans, or advise consumers on loan terms (including rates, fees, and other costs)
  • This exempts mobile home dealers from licensing, registry, a law prohibiting payment based on the terms of the loan, regulations prohibiting steering customers towards loans they can’t repay or with excessive fees, regulations prohibiting mischaracterizing a customer’s credit history, regulations prohibiting the mischaracterization of the appraised value of the home, or steering a customer towards a loan that’s more expensive than others that they qualify for.
• Increases the interest banks can charge people buying a home for under $75,000 without the loan being labeled as “high-cost”, which subjects the loans to Consumer Financial Protection Bureau regulations. The regulations this would exempt the loans from:
  • Ban balloon payments, which is an oversized payment due at the end of a mortgage
  • Prohibit banks from charging prepayment penalties and fees
  • Restrict late fees to four percent of the payment that is past due
  • Bans fees for loan modification
  • Require banks make sure the loan can be repaid before offering it
  • Prohibit banks from recommending that a customer default on a loan
  • Require that banks receive a confirmation that the customer has received homeownership counseling before they accept a high-cost mortgage.
• Would allow banks to charge $3,000 or 5% in fees for loans under $75,000, whichever is greater.
  • Current law says banks can charge 5% for loans over $20,000, so the $3,000 fee option would hit the smaller loans the hardest.
• Passed the House 263-162. Rep. Walter Jones of North Carolina was the only Republican no vote.
• The bill would be vetoed by President Obama.
• Sponsored by Rep. Stephen Fincher of Tennessee
  • He took $15,150 from Clayton Homes for the 2014 election, his #4 donor and Clayton Home’s #1 recipient of funds.
  • Jeb Hensarling, the Chairman of the House Financial Services Committee was Clayton Homes #2 recipient in 2014, giving him $8,750.
• 4 pages

H.R. 685: Mortgage Choice Act of 2015

By changing the definition of what charges count as “points and fees”, this bill…

• Reverses a Dodd-Frank requirement that charges for title insurance be counted as points and fees if they’re paid to an affiliate of the bank/creditor that issued the loan.
  • Currently, points and fees can not be greater than 3% of the loan amount, which include fees charged by affiliated settlement providers. Every thing that gets exempted from counting as “points and fees” therefore becomes additional charges the lender is allowed to tack on to a mortgage.
• Exempts money held in escrow for insurance from being considered points and fees, which exempt insurance charges from the fee caps.
• The change in definition allows more fees to be charged to mortgages, while keeping those mortgages from being classified as “high-cost” and being subject to greater restrictions.
• This is a zombie bill from the 113th Congress; it passed by voice vote on June 9, 2014.
• Passed the House 286-140. Rep. Walter Jones of North Carolina was the only Republican no vote.
• Sponsored by Rep. Bill Huizenga of Michigan
  • His top three contributing industries are – in this order – Insurance ($273,265), Real Estate ($218,175), and Commercial Banks ($193,000).
• 4 pages

H.R. 299: Capital Access for Small Community Financial Institutions Act of 2015

Federal Home Loan Banks are privately owned cooperatives, funded by the global credit market, which provide money to local banks. There are twelve of them around the country and they are owned by the member banks. Most local banks are members of least one Federal Home Loan Bank.

• Allows privately insured credit unions to become members of Federal Home Loan Banks if they are FDIC eligible or are certified by the State.
• If the State doesn’t get to it in under 6 months, the application is deemed approved.
• Zombie bill from the 113th Congress
• Passed the House by voice vote
• Sponsored by Rep. Steve Stivers of Ohio
  • His top three contributing industries over the course of his four year Congressional career have been Insurance ($898,858), Commercial Banks ($534,622), and Securities and Investment ($502,098).
• 6 pages

H.R. 1259: Helping Expand Lending Practices in Rural Communities Act

• Orders the Consumer Financial Protection Bureau to create an application process for people or companies to have their location designated as “rural”
  • This would allow residents to become eligible for certain mortgages and exempt lenders from regulations intended for urban areas, according to Phil Hall of National Mortgage Professional Magazine
• Sunsets after 2 years.
• Zombie bill from the 113th Congress
• Passed the House 401-1. Nydia Valazquez of New York was the only no vote.
• Sponsored by Rep. Andy Barr of Kentucky
  • He has taken $333,800 from the Securities & Investment industry during his 3 years in Congress.
• 4 pages

H.R. 1195: Bureau of Consumer Financial Protection Advisory Boards Act

• Creates paid advisory boards for the Consumer Financial Protection Bureau made up of bankers
• Places limits on funding for the Consumer Financial Protection Bureau
• Passed the House 235-183, with 4 Democrat Ayes and 5 Republican Nays
• President Obama would veto the bill
• Sponsored by Rep. Robert Pittenger of North Carolina
  • His #4 and #5 contributing industries are Securities & Investment and Commercial Banks; he’s taken a combined $189,450 during his 3 years in Congress
• 7 pages

H.R. 1314: Ensuring Tax Exempt Organizations the Right to Appeal Act

• Became the vehicle for Trade Promotion Authority in the Senate
• Creates an appeal process for organizations that are denied tax-exempt status
• Would apply to decisions made on or after May 19, 2014.
• Passed the House by voice vote
• Sponsored by Rep. Patrick Meehan of Pennsylvania
• 4 pages

H.R. 1026: Taxpayer Knowledge of IRS Investigations Act

• Gives the Treasury Secretary the option of telling organizations if they are investigating a claim of unauthorized information disclosure by a government, if the investigation substantiated their claim, and if any action, including prosecution, is planned.
• Passed the House by a voice vote
• Sponsored by Rep. Mike Kelly of Pennsylvania
• 3 pages

H.R. 709: Prevent Targeting at the IRS Act

• Allows the IRS to fire employees who steer and audit for a political purpose or for personal gain.
• Passed the House by a voice vote
• Sponsored by Rep. James Renacci of Ohio
• 2 pages

H.R. 1104: Fair Treatment for All Gifts Act

• Makes gifts made to 501(c)4 “social welfare” groups, 501(c)5 labor and agricultural groups, and 501(c)6 business groups (including chambers of commerce, real-estate boards, and professional football leagues) tax exempt.
• Passed the House by voice vote
• Sponsored by Rep. Peter Roskam of Illinois
• 3 pages

H.R. 1058: Taxpayer Bill of Rights Act

• Tells the IRS Commissioner to “ensure” that IRS employees are “familiar with and act in accord” with a list of “taxpayer rights” including
  • The right to be informed
  • The right to quality service
  • The right to pay no more than the correct amount of tax
  • The right to challenge the position of the Internal Revenue Service and be heard
  • The right to appeal a decision of the Internal Revenue Service in an independent forum
  • The right to finality
  • The right to privacy
  • The right to confidentiality
  • The right to retain representation
  • The right to a fair and just tax system
• Passed the House by a voice vote
• Sponsored by Rep. Peter Roskam of Illinois
• 3 pages

H.R. 1152: IRS Email Transparency Act

• Prohibits IRS employees from using personal email accounts for official business
• Passed the House by a voice vote
• Sponsored by Rep. Kenny Marchant of Texas
• 2 pages

H.R. 1105: Death Tax Repeal Act

• Repeals the estate tax for anyone who dies after the bill is signed
• Repeals the generation-skipping transfer tax, which is a tax on gifts and transfers of wealth to unrelated people who are more than 37.5 years younger than the donor, or to related people who are one generation younger.
• Would lower the top gift tax rate from 40 to 35 percent.
• The effects of this on the budget would not be counted.
• The CBO says this would increase the deficit by $269 billion over the next 10 years
• President Obama would veto the bill.
• Passed by 240-179
• Sponsored by Rep. Kevin Brady of Texas
• 7 pages

H.R. 622: State and Local Sales Tax Deduction Fairness Act

• Permanently extends the law that allows taxpayers who itemize their claims to deduct their state’s sales taxes instead of getting a deduction for their state’s income taxes.
• The effect of this bill on the budget would not be counted.
• CBO says this would increase the Federal deficit by $42 billion over the next ten years.
• President Obama would veto the bill.
• Passed the House 272-152. Rep. Walter Jones of North Carolina was the only Republican no vote
• Sponsored by Rep. Kevin Brady of Texas
• 2 pages

H.R. 1562: Contracting and Tax Accountability Act of 2015

• Stops Federal agencies from contracting with companies that are tax delinquent
• A waiver can be issued and the contract granted if a report is submitted to Congress saying that the contract “significantly affects the interests of the United States”
• Passed the House 424-0
• Sponsored by Rep. Jason Chaffetz of Utah
• 9 pages

H.R. 471: Ensuring Patient Access and Effective Drug Enforcement Act

• Makes the Attorney General list specific laws and regulations that a drug company is accused of violating in their notices to the companies regarding the possible suspension of their drug’s registration.
• Allows drug companies to submit a “corrective action plan” when their drug registration may be suspended
• Passed the House by a voice vote
• Sponsored by Rep. Tom Marino of Pennsylvania
  • His top contributing industry for the last election was the pharmaceutical industry; they gave him $55,250.
• 6 pages

S. 971: Medicare Independence at Home Medical Practice Demonstration Improvement Act

• Increases the length of Medicare contracts for at-home care from 3 years to 5 years
• Passed the Senate by a voice vote
• Sponsored by Senator Ron Wyden of Oregon
• 2 pages

H.R. 373: Good Samaritan Search and Recovery Act

• Clarifies that search and rescue volunteers are not Federal volunteers and are not entitled to Federal compensation.
• Releases the government from liability for allowing search and rescue teams onto Federal land so that they won’t have to get insurance.
• The government as to approve or deny a request for a search and rescue mission within 48 hours.
• Passed the House 413-0
• Sponsored by Rep. Joe Heck of Nevada
  • Rep. Heck introduced the bill in response to the murder of Keith Goldberg; the search for his body in the Lake Mead National Recreation Area was delayed because the search team needed a special use permit and a $1 million insurance policy. It took 10 months to get the insurance; his body was found 3 hours after their search began. The National Association for Search and Rescue and the National Park Service, however, don’t think access is a problem.
• 6 pages

S. 304: Motor Vehicle Safety Whistleblower Act

• Protects the identity of whistleblowers who provide information relating to motor vehicle defects or other dangerous safety problems.
• Allows the government to give up to 30% of the fine collected from a car company that breaks the law to the whistleblower whose information lead to the conviction.
• The whistleblower is not allowed to be represented by a lawyer.
• Passed the Senate by a voice vote
• Sponsored by Senator John Thune of South Dakota
  • Senator Thune has taken over $380,000 from the automotive industry
• 11 pages

S. 984: Steve Gleason Act of 2015

• Starting in 2016, Medicare would cover speech generating devices.
• Allows people to own their speech generating devices (as opposed to renting them) if purchased between October 1, 2015 and October 1, 2018.
• Named after former NFL football player Steve Gleason, who played for the New Orleans Saints before being diagnosed with ALS
• Passed the Senate of a voice vote
• Sponsored by Senator David Vitter of Louisiana
• 3 pages

Hearings

Rules Committee: April 13 on HR 650 and HR 685, about housing bills.

Rules Committee: April 21 on HR 1731 and HR 1560 on Cybersecurity

House Committee on Financial Services: March 18 hearing on deregulation for banks titled “Preserving Consumer Choice and Financial Independence”

Information Presented in This Episode

Article: ‘Doc fix’ headed to president’s desk after easily clearing Senate by Paul Demko, Modern Healthcare, April 14, 2015.

Article: The mobile-home trap: How a Warren Buffett empire preys on the poor by Mike Baker and Daniel Wagner, The Seattle Times, April 2, 2015.

Article: MBA’s Mortgage Action Alliance: A Message from MAA Chairman Fowler Williams by Fowler Williams, National Mortgage Professional Magazine, June 11, 2015.

Article: U.S. Bank Profits Near Record Levels by Robin Sidel and Saabira Chaudhuri, Wall Street Journal, August 11, 2014

Article: Bureaucracy hindered search for slain brother by Anjeanette Damon, USA Today, March 8, 2014.

Webpage: About the National Cybersecurity and Communications Integration Center, Department of Homeland Security.

Webpage: Team Gleason

Press Release: Rep. Kelly Introduces Taxpayer Knowledge of IRS Investigations Act

Additional Information

Kickstarter: Explore Campaign Finance App by Soloman Kahn.

Jen’s Podcast Appearances

Episode 66: Talk Nerdy with Cara Santa Maria

Episode 42: Podcast Junkies with Harry Duran

Music Presented in This Episode

• Intro & Exit: Tired of Being Lied To by David Ippolito (found on Music Alley by mevio)
• Ask Your Doctor by Neal Fox (found on Music Alley by mevio)
• Thank you by Ben Willmott (found on Music Alley by mevio)