Bill Summary
The Transparency and Accountability of Failed Exchanges Act is a bill that aims to amend a section of the Patient Protection and Affordable Care Act. This amendment would require any state that receives a federal grant to establish a health insurance exchange and later decides to terminate or transfer operation of the exchange to submit a report on how the grant funds were used. Additionally, the state would be required to return any unobligated funds and provide a record of any property acquired with the grant funds to the Administrator of General Services. The bill also outlines the procedures for disposing of this property and depositing any income from it into the general fund of the Treasury for deficit reduction. The False Claims Act would also apply to any potential fraud, waste, or abuse of these grant funds, with states being required to refer these matters to the United States Department of Justice. The Attorney General would have the authority to enforce this legislation. This bill would apply to grants made before, on, or after the date of its enactment and to any exchange terminations or transfers that occur before, on, or after this date.
Possible Impacts
1. People who work for a state that receives a federal grant to establish a healthcare exchange may have to undergo additional audits and provide detailed reports on how grant funds were used. This could increase workload and potentially lead to job loss if the state is found to have misused funds.
2. State governments may be hesitant to accept federal grants for healthcare exchanges in fear of having to return funds and undergo audits if they later decide to terminate or transfer the operation of the exchange. This could limit the availability of healthcare options for people in the state.
3. The False Claims Act preemption could affect people by limiting the ability of individual states to enforce and investigate fraud, waste, and abuse in the use of federal funds. This could potentially allow for misuse of funds and harm those who rely on the healthcare system.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 59 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 59
To amend title I of the Patient Protection and Affordable Care Act to
require that a State awarded a Federal grant to establish an Exchange
and that terminates the State operation of such an Exchange provide for
an audit of the use of grant funds and return funds to the Federal
Government, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 3, 2019
Mr. Allen introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To amend title I of the Patient Protection and Affordable Care Act to
require that a State awarded a Federal grant to establish an Exchange
and that terminates the State operation of such an Exchange provide for
an audit of the use of grant funds and return funds to the Federal
Government, and for other purposes.
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 ``Transparency and Accountability of
Failed Exchanges Act''.
SEC. 2. STATES AWARDED EXCHANGE ESTABLISHMENT GRANTS THAT TERMINATE
STATE OPERATION OF SUCH AN EXCHANGE ARE REQUIRED TO
PROVIDE AUDITS OF THE USE OF GRANT FUNDS AND RETURN FUNDS
TO THE FEDERAL GOVERNMENT.
(a) In General.--Section 1311(a) of the Patient Protection and
Affordable Care Act (42 U.S.C. 18031(a)) is amended by adding at the
end the following new paragraph:
``(6) Treatment in case of exchange termination.--
``(A) In general.--In the case of a State that is
awarded a grant under this section to establish an
Exchange and that terminates the operation of such
Exchange or otherwise transfers the operation of such
Exchange to an entity other than such State--
``(i) not later than 30 days after the date
of such termination or transfer (or, in the
case of such a termination or transfer that
occurred before the date of the enactment of
this paragraph, not later than 30 days after
such date of enactment), the State shall submit
to Congress and the Secretary a report
containing the results of an audit of how
amounts awarded to such State pursuant to such
grant were used; and
``(ii) not later than 30 days after the
date of such termination or transfer (or, in
the case of such a termination or transfer that
occurred before the date of the enactment of
this paragraph, not later than 30 days after
such date of enactment)--
``(I) in accordance with
subparagraph (B), there are rescinded
any unobligated amounts awarded to such
State pursuant to such grant; and
``(II) in accordance with
subparagraph (C), the State shall
provide to the Administrator of General
Services any property acquired by such
State with amounts awarded to such
State pursuant to such grant and shall
submit to Congress and the Secretary a
record of the provision of such
property to the Administrator.
``(B) Retention of funds for deficit reduction.--
Funds rescinded under subparagraph (A)(ii)(I) shall be
retained in the general fund of the Treasury for
Federal budget deficit reduction.
``(C) Treatment of property.--The Administrator of
General Services may--
``(i) dispose of any property obtained
pursuant to subparagraph (A)(ii)(II) through a
public auction for cash and for not less than
the fair market value of the property, as
determined by the Administrator;
``(ii) provide to any Federal agency such
property for official use by such agency; or
``(iii) lease or hire such property, and
may insure such property.
``(D) Exemption from certain property disposal
requirements.--Any disposal of property conducted under
subparagraph (C)(i) shall not be subject to--
``(i) subchapter IV of chapter 5 of
subtitle I of title 40, United States Code;
``(ii) sections 550 and 553 of title 40,
United States Code;
``(iii) section 501 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11411);
``(iv) any other provision of law
authorizing the no-cost conveyance of property
owned by the Federal Government; or
``(v) any congressional notification
requirement other than that in section 545 of
title 40, United States Code.
``(E) Income from property.--The Administrator
shall deposit any income from the disposition, lease,
or hire of the property obtained pursuant to
subparagraph (A)(ii)(II) in the general fund of the
Treasury for Federal budget deficit reduction.''.
(b) Application of the False Claims Act.--Section 1313(a)(6)(A) of
the Patient Protection and Affordable Care Act (42 U.S.C.
18033(a)(6)(A)) is amended by adding at the end the following:
``Further, except as otherwise provided for expressly under this Act,
the False Claims Act preempts any State enforcement action of alleged
fraud, waste, and abuse of funds issued pursuant to this Act. States
that terminate or transfer their exchange will refer all current and
future matters involving fraud, waste, and abuse of funds issued
pursuant to this Act to the United States Department of Justice. Any
current or future enforcement action shall be removed to or brought in
Federal court. All fines, penalties, damages, or awards, monetary or
otherwise, arising out of any current or future enforcement action,
represent Federal funds that shall be returned to the United States.''.
(c) Enforcement Action.--The Attorney General may bring an action
before the appropriate district court of the United States to enforce
section 1311(a)(6) of the Patient Protection and Affordable Care Act
(42 U.S.C. 18031(a)(6)).
(d) Effective Date.--The provisions of this section, including the
amendment made by subsection (a), shall apply with respect to grants
made before, on, or after the date of the enactment of this Act and to
terminations and transfers of Exchanges occurring before, on, or after
such date.
<all>