In the United States Senate

Mr. Roth (for himself, Mr. Lott, Mr. Grassley, Mr. Nickles, and Mr. D'Amato) introduced the following bill; which was referred to the Committee on Finance.

A Bill to amend title XVIII of the Social Security Act to save the future of the Medicare program from insolvency.

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 "Renewing America's Promises Act of 1997."

Section 2. Medical Savings Accounts

(a) Authorizes the creation of Medical Savings Accounts (MSAs) that will be tax deductible and will conform with all applicable sections of current Internal Revenue Code on Individual Retirement Accounts.

(b) Payment into MSAs will be limited to $2500 indexed to inflation as measured by the Consumer Price Index.

(c) This Account will be made available for the purchase of insurance by the payee upon reaching the age of 65 or upon permanent disability.

Section 3. Lockbox for Trust A Funds

(a) Authorizes the creation of a fiduciary "lockbox" to ensure that all savings from increased premiums and deductibles are deposited into the Part A Trust Fund.

(b) Use of these funds for any other purpose than funding of the HI Trust Fund (Part A Trust Fund) is prohibited.

Section 4. Adjustment of Monthly Enrollment Premiums

(a) The monthly premium shall be equal to 50 percent of the monthly actuarial rate for enrollees.

Section 5. Increase of Preventative Care Outlays

(a) Increase the current funding for Medicare spending in the area of preventative health care by 0.7% of the total Medicare spending, adjusted per annum.

Section 6. Reform of Health Maintenance Organization (HMO) payments on local fee-for-service costs

(a) Reduce the current AAPCC provided to HMOs per Medicare enrollee dollar compensation from $.95 to $.85.

Section 7. Expansion of Medicare Anti-fraud Initiatives

(a) Expand the jurisdiction of Health Care Finance Administration (HCFA) to include the ability to investigate fraudulent reporting practices by the health care industry to the federal government.

(b) The HCFA shall be authorized to create civil and criminal sentences to punish fraud within the Medicare system. These penalties shall not exceed two years imprisonment or $1,000,000 in punitive damages (in excess, not inclusive of, all non-punitive damages).

Section 8. Medigap Insurance Reform

(a) The issuer of a Medicare supplemental policy may not deny or condition the issuance or effectiveness of a Medicare supplemental policy on the basis of any preexisting condition, lack of previous insurance coverage, or disability of the insuree.

Section 9. Rural Health Care Reform

(a) Increase Medicare outlays to rural counties (less than 60% urban as of last census) to .5% of total Medicare spending.

Section 10. Call to Action for American Education

(a) The Department of Education shall develop national tests of student achievement in reading and math.

(b) The Department of Education shall expand the national credentialing program for master teachers.

(c) The Department of Education shall develop a plan to deploy 1,000,000 citizens as volunteer reading tutors.

(d) Authorizes the Department of Education to expand Head Start to 1,000,000 children by the year 2002.

(e) The Department of Education shall develop a plan to increase school choice for parents and to establish 3,000 charter schools by the year 2002.

(f) Recognizes the sense of the Congress that school uniforms, curfews, truancy enforcement, and zero tolerance of drugs and alcohol in schools are effective methods for improving the character of our students and contribute to a positive learning environment.

(g) 1) Authorizes the creation of Educational Savings Accounts (ESAs) which will be tax deductible and will conform with all applicable sections of current Internal Revenue Code on Individual Retirement Accounts.

2) Payment into ESAs will be limited to $2500 per year, indexed to inflation as measured by the Consumer Price Index. Such payments may be made by a legal guardian(s), and are deductible for that guardian(s).

3) This Account will be made available for the purchase of education at any accredited private elementary, junior high, or high schools or accredited institutions of a post-secondary nature as chosen by the legal guardian(s).

(h) Authorizes the creation of the "America's HOPE Scholarship," providing a $1,500 tax credit for those enrolled in accredited post-secondary education institutions. This credit has a two year lifetime limit.

(i) The Department of Education shall develop a plan to provide a computer with access to the World Wide Web in each classroom by the year 2002.