I

106TH CONGRESS

1ST SESSION H. R. 2180

To require the establishment of regional consumer price indices to compute

cost-of-living increases under the programs for Social Security and Medicare and other medical benefits under titles II and XVIII of the Social

Security Act.

IN THE HOUSE OF REPRESENTATIVES

JUNE 10, 1999

Mr. WEINER introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Commerce, and Education and the Workforce, for a period to be subsequently

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To require the establishment of regional consumer price indices to compute cost-of-living increases under the programs for Social Security and Medicare and other medical benefits under titles II and XVIII of the Social

Security Act.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘COLA Fairness Act

5 of 1999’’.
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1 SEC. 2. REGIONAL CONSUMER PRICE INDEX.

2 (a) RECOGNITION OF REGIONS.—The Bureau of

3 Labor Statistics of the Department of Labor shall estab4 lish and publish a mapping of the United States under

5 which 14 regions are recognized comprising the United

6 States. Each region shall include one of the cities listed

7 in subsection (b).

8 (b) SPECIFIED CITIES.—The cities specified in this

9 subsection are the following:

10 (1) Atlanta, Georgia;

11 (2) Boston, Massachusetts;

12 (3) Chicago, Illinois;

13 (4) Cleveland, Ohio;

14 (5) Dallas, Texas;

15 (6) Detroit, Michigan;

16 (7) Philadelphia, Pennsylvania;

17 (8) Houston, Texas;

18 (9) Los Angeles, California;

19 (10) Miami, Florida;

20 (11) New York, New York;

21 (12) San Francisco, California;

22 (13) Seattle, Washington; and

23 (14) Washington, District of Columbia.

24 (c) ESTABLISHMENT OF REGIONAL CONSUMER

25 PRICE INDICES.—The Bureau shall establish and publish

26 for each region recognized pursuant to subsection (a) a
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1 monthly index for the region, to be known as the ‘‘Re2 gional Consumer Price Index’’ for the region, that indi3 cates changes over time in expenditures for consumption

4 which are typical for individuals residing in the region.

5 (d) EFFECTIVE DATE.—The preceding provisions of

6 this section shall apply with respect to calendar months

7 beginning on or after January 1, 2001.

8 (e) AUTHORIZATION OF APPROPRIATIONS.—There

9 are authorized to be appropriated such sums as are nec10 essary to carry out the provisions of this section.

11 SEC. 3. COMPUTATION OF SOCIAL SECURITY COST-OF-LIV12 ING INCREASES.

13 (a) AMENDMENTS TO TITLE II.—

14 (1) IN GENERAL.—Section 215(i) of the Social

15 Security Act (42 U.S.C. 415(i)) is amended—

16 (A) in paragraph (1)(G), by inserting be17 fore the period the following: ‘‘, and, with re18 spect to an individual who, at the time he ini19 tially becomes eligible for old-age insurance

20 benefits or disability insurance benefits (or dies

21 before initially becoming so eligible), resides in

22 a region of the United States recognized by the

23 Bureau of Labor Statistics pursuant to section

24 2(a) of the COLA Fairness Act of 1999, the

25 applicable Consumer Price Index shall be
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1 deemed to be the Regional Consumer Price

2 Index for such region’’; and

3 (B) in paragraph (4), by striking ‘‘and by

4 section 9001’’ and inserting ‘‘, by section

5 9001’’, and by inserting after ‘‘1986,’’ the fol6 lowing: ‘‘and by section 3(a) of the COLA Fair7 ness Act of 1999,’’.

8 (2) CONFORMING AMENDMENTS RELATING TO

9 APPLICABLE FORMER LAW.—Section 215(i)(4) of

10 such Act (42 U.S.C. 415(i)(4)) is amended by add11 ing at the end the following new sentence: ‘‘For pur12 poses of computing adjustments under this sub13 section as so in effect, the applicable Consumer

14 Price Index shall be deemed to be the Regional Con15 sumer Price Index for the region in which such indi16 vidual resides at the time he becomes eligible for old17 age insurance benefits or disability insurance bene18 fits (or dies before initially becoming so eligible).’’.

19 (b) EFFECTIVE DATE.—The amendments made by

20 this section shall apply to determinations made by the

21 Commissioner of Social Security under section 215(i)(2)

22 of the Social Security Act (42 U.S.C. 415(i)(2)) with re23 spect to cost-of-living computation quarters ending on or

24 after September 30 of the second calendar year following

25 the calendar year in which this Act is enacted.
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1 SEC. 4. AMENDMENTS TO TITLE XVIII OF THE SOCIAL SE2 CURITY ACT.

3 (a) IN GENERAL.—Title XVIII of the Social Security

4 Act (42 U.S.C. 1395 et seq.) is amended—

5 (1) in section 1814(i)(2)(B), by inserting ‘‘(i)

6 for accounting years ending before October 1 of the

7 second calendar year following the calendar year in

8 which the COLA Fairness Act of 1999 was en9 acted,’’ after ‘‘for a year is’’, and by inserting after

10 ‘‘fifth month of the accounting year’’ the following:

11 ‘‘, and (ii) for accounting years ending after October

12 1 of such calendar year, the cap amount determined

13 under clause (i) for the last accounting year referred

14 to in such clause, increased or decreased by the

15 same percentage as the percentage increase or de16 crease, respectively, in the medical care expenditure

17 category (or corresponding category) of the applica18 ble consumer price index, published by the Bureau

19 of Labor Statistics, from March of such calendar

20 year to the fifth month of the accounting year’’;

21 (2) in section 1833(h)(2)(A)(i), by striking

22 ‘‘Consumer Price Index for All Urban Consumers

23 (United States city average)’’ and insert ‘‘applicable

24 consumer price index’’;

25 (3) in section 1833(i)(2)(C), by striking ‘‘con26 sumer price index for all urban consumers (U.S. city
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1 average)’’ and insert ‘‘applicable consumer price

2 index’’;

3 (4) in section 1834(a)(14)(D), by striking ‘‘con4 sumer price index for all urban consumers (United

5 States city average)’’ and insert ‘‘applicable con6 sumer price index’’;

7 (5) in section 1834(h)(4)(A)(vi), by striking

8 ‘‘consumer price index for all urban consumers

9 (United States city average)’’ and insert ‘‘applicable

10 consumer price index’’;

11 (6) in section 1834(l)(3)(A), by striking ‘‘con12 sumer price index for all urban consumers (U.S. city

13 average)’’ and insert ‘‘applicable consumer price

14 index’’;

15 (7) in section 1834(l)(3)(B), by striking ‘‘con16 sumer price index for all urban consumers (U.S. city

17 average)’’ and insert ‘‘applicable consumer price

18 index’’;

19 (8) in section 1842(s)(1), by striking ‘‘con20 sumer price index for all urban consumers (United

21 States city average)’’ and insert ‘‘applicable con22 sumer price index’’; and

23 (9) in section 1886(h)(5)(B), by striking ‘‘Con24 sumer Price Index for All Urban Consumers (United
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1 States city average)’’ and insert ‘‘applicable con2 sumer price index’’.

3 (b) DEFINITION OF APPLICABLE CONSUMER PRICE

4 INDEX.—Section 1861 of such Act (42 U.S.C. 1395x) is

5 amended by adding at the end the following new sub6 section:

7 ‘‘Applicable Consumer Price Index

8 ‘‘(uu) The term ‘applicable consumer price index’

9 means, in connection with any person affected by an ad10 justment to be made under this title based on such index,

11 the Regional Consumer Price Index (as prescribed from

12 time to time by the Bureau of Labor Statistics pursuant

13 to section 2(c) of the COLA Fairness Act of 1999) for

14 the region in which such person resides (in the case of

15 an individual) or maintains principal offices (in any other

16 case) at the time the adjustment takes effect. The Sec17 retary of Health and Human Services shall prescribe by

18 regulation, in connection with each requirement for an ad19 justment under this title based a Regional Consumer Price

20 Index, the manner in which such adjustment is to be de21 termined to affect particular persons for purposes of this

22 subsection.’’.

23 (c) EFFECTIVE DATE.—The amendments made by

24 this section shall apply with respect to determinations

25 made for periods ending after December 31 of the second
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1 calendar year following the calendar year in which this Act

2 was enacted.

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