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CBO: Health a middling target for costly mandates

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Congress has imposed many more new, unfunded federal mandates on sectors other than health care than on the health care sector in recent years, according to analysts at the Congressional Budget Office (CBO).

The federal Unfunded Mandates Reform Act of 1995 (UMRA) defines a mandate as a federal law or regulation that requires “non-federal entities to expend their resources to carry out national policies,” CBO analysts report in a new mandate study.

UMRA requires the CBO to tell members of Congress about the potential effects of proposed mandates. UMRA also requires the CBO to tell Congress if the total annual cost of the mandates included in a legislative proposal is likely to exceed $150 million, in 2013 dollars.

About 16 percent of the 9,000 legislative proposals reviewed since UMRA took effect have included private-sector mandates, and about 4 percent of the proposals included private-sector mandates that could have imposed more than $150 million in annual costs, the CBO analysts said.

In 2001, the CBO started reporting every year on the congressional mandate proposals that were actually enacted into law.

Congress enacted about 2,300 public laws between 2001 and 2011. Over that period, about 3 percent of the laws enacted included at least one private-sector mandate that was expected to impose more than $150 million in private-sector compliance costs.

For another 2 percent of the laws enacted, the CBO could not come up with private-sector mandate cost projections. 

The CBO analysts broke the number of high-cost mandate laws down by sector affected.

The analysts found, for example, that 11 of the laws passed between 2001 and 2011 imposed high-cost regulations on economic activity.

Eight imposed high-cost regulations on the safety and security sector, five imposed high-cost regulations on the health sector, and three imposed high-cost regulations on workplace activity.

When the analysts took a similar look at laws passed over  the period that imposed high-cost fee mandates, the analysts found that 13 imposed high-cost customs fee requirements, six imposed high-cost patent and trademark fee requirements, three imposed high-cost health fee requirements, and three imposed high-cost environment or energy efficiency fee requirements.

The analysts also looked at the regulatory agencies responsible for implementing the high-cost 2001-2011 mandate laws.

The U.S. Treasury Department was responsible for implementing 17 of the high-cost mandate laws, and the U.S. Department of Homeland Security was responsible for implementing 16, the analysts said.

The U.S. Department of Health and Human Services was responsible for implementing just five high-cost mandate laws.

The U.S. Labor Department, which helps oversee some group health benefits mandate programs, was responsible for implementing three high-cost mandates laws.

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