Today's Ways and Means full committee markup Congressman Pat Tiberi (R-OH), chairman of the Subcommittee on Health, delivered the following remarks regarding legislation he sponsored, H.R. 5713, the Sustaining Healthcare Integrity and Fair Treatment Act, and H.R. 3608, which would clarify that the tax on commercial air transportation, also called the "ticket tax," does not apply to aircraft management services for general aviation flights that do not use tickets. H.R. 5713 and H.R. 3608 were approved by voice vote.
The Sustaining Healthcare Integrity and Fair Treatment Act (H.R. 5713): Provides Long-Term Care Hospitals (LTCHs) with essential regulatory relief and closes a program integrity loophole that makes the Medicare, Medicaid, and CHIP programs vulnerable to fraud, waste and abuse.
Congressman Tiberi's remarks as prepared for delivery:
"It's a pleasure to be before [the committee], this time with a bill that provides regulatory relief to Long-Term Care Hospitals. I am happy that the committee came together once more in a bipartisan effort and I want to thank my colleague and friend, Mr. Bill Pascrell, for co-sponsoring this bill with me.
"H.R. 5713, the Sustaining Healthcare Integrity and Fair Treatment Act, the SHIFT Act, will give relief to all LTCHs from the 25 percent rule. This CMS rule, which has been delayed for ten years, allows for no more than 25 percent of patients to come from one inpatient acute hospital in one quarter. My bill will reinstate the 50 percent threshold that was in effect prior to July 1, 2016 and delay the rule for nine months.
"During a time when patients and health care providers are facing increasing burdens and higher costs, I am pleased that this committee came to an agreement that will help over 400 hospitals across the country. This bill will also provide relief for four specific groups of LTCHs that treat a highly unique group of patients."
To amend the Internal Revenue Code of 1986 to exempt amounts paid for aircraft management services from the excise taxes imposed on transportation by air (H.R. 3608): Resolves potential ambiguities in the airline ticket tax by codifying the current Internal Revenue Service (IRS) practice regarding the treatment of aircraft management services.
Congressman Tiberi's remarks as prepared for delivery:
"I was pleased that earlier this week the House passed the FAA extension through fiscal year 2017. In light of that, it is appropriate that the Committee is considering my bill, H.R. 3608, this week, because it deals with transportation taxes.
"Let me bold and underline this. This is a bipartisan, bicameral piece of legislation. In the House, it was introduced by myself and my colleague from Central Ohio, Representative Joyce Beatty. In the Senate, the lead sponsor is Senator Sherrod Brown and it is co-sponsored by Senator Rob Portman.
"H.R. 3608 would right a wrong that has impacted over 750 businesses in the United States, including in my home state of Ohio, for more than four years. This bipartisan bill simply clarifies that the tax on commercial air transportation, also called the "ticket tax," does not apply to aircraft management services for general aviation flights that do not use tickets.
"In March 2012, the IRS's chief counsel released a memorandum stating that services provided in support of aviation are taxable as if the services are transportation itself, effectively imposing a new tax without Congressional approval.
"The IRS said that the ticket tax applies to businesses that supply pilots, mechanics, maintenance, scheduling and navigation, and the other services needed for general aviation flights, but don't supply the aircraft along with those services.
"For decades it has been clear, and Congress has specifically noted, that commercial aviation is required to pay the ticket tax, while general aviation pays the fuel tax. However, the chief counsel of the IRS ignored this and seeks to impose a tax where Congress expressly chose not to apply one.
"For more than four years, we have tried to explain that to the IRS, but the IRS has refused to admit their mistake and withdraw their opinion. This bill will restore Congressional intent and right this wrong."