Legislative Bulletin: H.R. 1253, Health Insurance Restrictions and Limitations Clarification Act
Floor Situation: H.R. 1253 is being considered under suspension of the rules, requiring a two-thirds vote for passage. The legislation was introduced by Rep. Michael Burgess (R-TX) on March 3, 2009.
Summary: H.R. 1253 would amend the Employee Retirement Income Security Act, the Internal Revenue Code, and the Public Health Service Act to require group health insurance sponsors (i.e. employers) and issuers (i.e. insurance carriers) to disclose plan restrictions and limitations in an easily understandable format prior to enrollment.
Background: On September 23, 2008, the House passed a similar bill (H.R. 6908) by voice vote. The Senate never considered the legislation.
Cost: According to the Congressional Budget Office, implementation of H.R. 1253 would have no significant impact on the federal budget. The CBO score also notes that the bill would impose an unfunded mandate on the private sector, by requiring insurers to disclose limitations and restrictions on health insurance coverage; however, CBO does not believe these mandates exceed the thresholds specified in the Unfunded Mandates Reform Act (UMRA).