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, D.C. – U.S. Rep. Don Young (R-Alaska) and a bipartisan coalition of House and Senate Members today introduced legislation that would provide low-cost health coverage to fishermen and their families in Alaska and other coastal states.

            While national in scope, the legislation would allow fishermen in Alaska to first research the specific needs of the Alaskan fishing industry and then provide funds to implement a state-wide program for providing better access to health insurance and health care.

            “The United Fishermen of Alaska released a study last year highlighting the numerous problems associated with the lack of health care coverage for commercial fishermen and their families,” said Young, the Ranking Member of the Natural Resources Committee, which has jurisdiction over fisheries issues.

            “The UFA study determined that Alaska fishing permit holders were four times more likely to live in a community without a hospital and were less likely to have health insurance than other Alaskans.  The study also determined that residents in Alaska had the additional problem of being served by far fewer private insurance companies that provide service to individuals or small businessmen than other states.”

            The UFA study also noted that Alaska has the highest health care costs in the nation.

            “These findings highlight the need for this legislation,” Young said.  “Not only are this generation’s fishermen affected by this, but the lack of adequate health insurance is being seen as a reason for the next generation choosing jobs in other industry sectors than in the fishing industry.”

            While the UFA study provides necessary information on the health care needs of permit holders, more detailed research will be necessary to determine the health care needs of crew members as well. 

The Commercial Fishing Industry Health Care Coverage Act of 2008 would authorize the Secretary of Health and Human Services (HHS) to fund healthcare planning and implementation grants for commercial fishing states or organizations.  The funding authorized in this bill would also be used to help establish health care coverage programs.  The legislation would allow states or organizations to set up programs or add to existing health care programs for commercial fishermen and their families who have no health insurance or who are underinsured.  

The Commercial Fishing Industry Health Care Coverage Act would specifically authorize a series of grant programs. To qualify for these funds, states or organizations must provide matching funds of $1 for every $2 in federal funding.  The bill would authorize $50 million over a five year period.

            In addition to Young, other sponsors of the Commercial Fishing Industry Health Care Coverage Act of 2008 are:

-         U.S. Sen. Ted Stevens (R-AK)

-         U.S. Sen. Lisa Murkowski (R-AK)

-         U.S. Rep. Wayne Gilchrest (R-MD)

-         U.S. Sen. Ted Kennedy (D-MA)

-         U.S. Sen. John Kerry (D-MA)

-         U.S. Rep. Barney Frank (D-MA)

-         U.S. Rep. Tom Allen (D-ME)

-         U.S. Rep. Patrick Kennedy (D-RI)

-         U.S. Rep. John Tierney (D-MA)

-         U.S. Rep. William Delahunt (D-MA)

COMMERCIAL FISHING INDUSTRY HEALTH CARE COVERAGE ACT OF 2008

Establishment of Program.   

* Secretary of HHS to establish a grant program under HRSA for establishment of health care coverage

programs for the commercial fishing industry;

* Program planning grants (for commercial fishing states or organizations in such states);

* Implementation and Administration grants for no more than 15 commercial fishing states.

Program Planning Grants.

* Up to $200,000 annually for no more than two years to organizations or states;

* If awarded to an organization, the group must have knowledge of the industry;

* Recipients to conduct initial research and planning for development of a qualified health care coverage

program within the state, including a demographic survey of the industry and its health needs;

development of a strategic plan for implementation of a qualified program, and a detailed financial plan;

* The Secretary must consult with states when awarding a planning grant to an organization to help determine if

the group has the necessary knowledge and familiarity with the industry and doesn’t have a history of

fraudulent or abusive practices.

Implementation and Program Administration Grants.

* When a program planning grant is completed, a State may apply, as appropriate, for implementation and

administration grants;

* Implementation grants for initial implementation of a program are not to exceed $2 million annually for no

more than two years;

*Administration grants for actual administration of a program are not to exceed $3 million annually for no more

than five years;

* Continued administration grants – after completion of 5 administration grants, up to $3 million annually if bad

economic conditions or poor fish stock conditions jeopardize the ability of the program to continue

providing affordable health care coverage;

* Implementation, administration, and continued administration grants can be awarded even if there was no

planning grant under this Act (i.e. if a group did the planning work on its own), or if the program was

developed or administered without funds from this Act and/or before enactment of this Act.

Eligibility Requirements

(For implementation and administration grants): include:

* Enrollment of fishing industry members and their families if they were uninsured or underinsured; need for

federal funding in order to operate;

* State assurances that, if a program already exists, new funds will not simply supplant existing state funding;

state assurances that for new programs there will be appropriate financial and consumer protection

policies, licensing and oversight, including such things as insolvency protection, stop-loss protection,

reinsurance requirements, receivership/liquidation protection, etc.

Matching Funds

(For implementation and administration grants): required ratio of 2:1 federal to non-federal funds.  The latter

can include in kind, services, equipment, etc.

Contracting Authority

* States may contract with organizations or companies (which can in turn subcontract) for the purposes of

carrying out implementation or administration grants.  The Secretary shall issue regulations governing

eligibility for contracts and subcontracts addressing concerns about a history of fraud or abuse,

capability to administer a health coverage program, and familiarity with the fishing industry.

Definitions

The following terms are defined:

* Commercial Fishing State (includes U.S. territories).

* Commercial Fishing Industry Member (includes shore side fishing businesses)

* Qualified Health Care Coverage Program (includes enrollment, eligibility, coverage and rate standards)

* Qualified Health Care Coverage (must be actuarially equivalent to Federal Employees Health Benefits

Program or State government health plan).

Authorization of Appropriations.

$5 million the first two years; $10 million the second two years; and $20 million in year five.

 

For more information, access the Committee on Natural Resources’ Minority website at:

http://republicans.resourcescommittee.house.gov/default.aspx

 

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