GovernmentExecutive.com

The House Government Reform Committee on Thursday passed a bill to allow tax deductions for federal civilian and military retirees paying into federal health insurance premium programs.

The bill (H.R. 1231) would amend the U.S. tax code to allow federal civilian and military retirees to pay into the Federal Employees Health Benefits Program on a pretax basis and allow active duty military personnel to apply a deduction for supplemental payments for TRICARE - the military's healthcare plan. The panel passed the measure by voice vote.

Committee Chairman Tom Davis of Virginia noted the federal retirement plan covers 8.6 million individuals, including 2.2 million federal and postal employees, 1.9 million federal annuitants and 4.5 million dependents.

The bill, which was first introduced in the 106th Congress, has 305 cosponsors. Sen. John Warner, R-Va., introduced a similar version of the measure (S. 623) with 46 cosponsors, but the bill has yet to be passed by the Senate Finance Committee.

COMMENTS

• So what in the world has happened to stall this bill H.R. 1231 in Congress? It has well over 300 sponsors and strong bipartisan support, but nothing has happened with it since last Sept. according to Government Executive bill tracker. I wrote to my representative, Republican Rep. Bill Thomas, and got back a letter last month indicating that he didn't support it because "private-sector employees do not receive a comparable exclusion" and "some may perceive this as being unfair". How fair is it that current federal employees can pay their health care premiums out of pretax dollars, but federal retirees cannot? Theresa McClain Posted June 15, 2004 11:18 AM
• Well, I would say it is about time. I hope it is passed along with the Windfall as well. The retirees get a very small cost of living raise and then health insurance goes up 10-13 percent each year. We never see a raise because it is eaten up by the insurance companies. I would like to see more money for myself and family. Hope both bills are passed. Are you listening, you politicians that are supposed to be for the people? Leland Dennis Burnham Posted September 28, 2003 9:53 PM
• Its about time you gave the federal employees a break. If you are going to let the president get away with only giving us a 2 percent pay raise then there needs to be other compensation. This would be a good one. Stop spending money on Iraq and start caring for people of the United States! It's not that I don't care about the people of Iraq, but we, the people of the United States, shoud be first. This would be another way to accomplish that. Larry Oaks Posted September 29, 2003 8:58 AM