Pre-tax health premium bill for retirees surfaces again in Congress

Rep. Tom Davis, R-Va., chairman of the House Government Reform Committee, introduced a bill Tuesday that would allow retired military and civilian federal workers to pay their monthly health care premiums with pre-tax dollars.

Davis and Sen. John Warner, R-Va., held a press conference in Washington Tuesday morning to promote H.R. 994 and put pressure on the House Ways and Means Committee to approve the concept, known as "premium conversion," that is embodied in the bill. Last year, the Government Reform Committee approved the legislation but it stalled in the Ways and Means Committee.

"Our champion there is Eric Cantor," Davis said, referring to the Republican congressman from Virginia. "We are going to continue to pursue co-sponsors."

Warner and Davis said there was plenty of support for the bill last year, and that momentum should carry over into this Congress. Davis said that 342 representatives co-sponsored the bill last year. According to Warner, 57 senators supported the bill.

The National Association of Retired Federal Employees noted that premium conversion is an option available to current federal workers and much of the private sector. NARFE President Charles Fallis said his organization was happy when current federal employees were allowed to use premium conversion, but it is now time "to bring federal retirees into the fold."

NARFE estimates that there are currently 2.3 million federal retirees, spouses, widows and widowers.

"Are we angry about this, that we were not included? Of course not," Fallis said at the press conference. "We are just disappointed that we were left out. We believe that federal retirees should also have this relief."

Davis agreed. He said it is not a difficult issue to find supporters for.

"This is just a question of fairness and equity," he said. The proposal has received strong backing from both Democrats and Republicans, Davis said.

Rep. Jon Porter, R-Nev., chairman of the House Government Reform Subcommittee on Federal Workforce and Agency Organization, also emphasized the bipartisan support. He noted that the existing inequity costs retired federal workers an average of $400 each year.

Warner promised attendees at the press conference-including a large gathering of NARFE members-that he would not allow red tape to ensnare the legislation this year. He noted that he has held about 12 federal jobs, including delivering mail, fighting in World War II and Korea, and serving as Navy secretary.

"Am I not the logical one to help you achieve your goals?" Warner asked the NARFE members. "This bill is not going to languish so long as I draw a breath in the United States Senate."