sentation on behalf of DOJ and DHHS has, in some cases, resulted in the omission of useful evidence from the record. The committee intends that the Court, as appropriate, exercise its authority to complete records and to receive additional evidence. The committee does not, however, anticipate that this authority will be generally used in pending cases or frequently required in future cases.

(e) Time for Judgment. Section 4402(e) extends the time period for the Court to make its judgment on petitions relating to vaccines administered before October 1, 1988. The committee recognizes that in the initial implementation, delays have arisen in proceedings on early cases. Rather than holding the Court to unrealistic time frames, the committee has chosen to allow an extra 6 months to deal with the backlog of pre-enactment cases. The committee intends that this extra time be used only as necessary and not be used as a general delay to cases that might quickly be resolved.

(f) Table. Section 4402(f) makes a technical correction in references in the Vaccine Injury Table.

(g) Compensation. Paragraph (1) of Section 4402(g) makes technical changes to clarify the compensation that is to be allowed in cases involving injuries associated with a vaccine administered before the effective date of the Act (October 1, 1988). The committee is aware that there may be some confusion about the allowable compensation and intends that pre-enactment injuries be eligible for actual unreimbursable expenses incurred from the date of judgment (as provided in 2115(a)(1)(A) of the Act), death benefits (as provided in 2115(1)(2)) and a total amount up to $30,000 for the combined amounts of lost earnings (as provided in 2115(a)(3)), pain and suffering (as provided in 2115(a)(4)), and attorneys' fees and costs (as provided in 2115(e)). This represents no change in policy from the Act and is only intended to clarify the amount of damages.

Paragraph (2) of Section 4402(g) makes technical changes to clarify that the Claims Court award for amounts to cover attorneys' fees and costs is to be included after proceedings are complete.

(h) Technical. Section 4402(h) makes technical amendments to clarify that judgments entered are final judgments and to remove any ambiguity that the Act contemplated different points in the proceeding by its use of different terms. The committee does not intend to alter the effect of the Act but simply to make clear that the stay is to continue in effect until all appeals, if any, are resolved. Similarly, under Section 2121(a), an election by the petitioner need not be made until 90 days after all appeals, if any, are resolved.

(i) Vaccine Information. Section 4402(i) amends the Act's requirement of vaccine information materials to be provided to parents and guardians of children receiving immunizations. The Act provided for these materials to include a summary of relevant State and Federal laws on vaccination requirements. The legislation would substitute a summary of relevant Federal recommendations concerning the schedule of childhood immunizations.

(j) Authorizations. The Act provides no authorizations for administrative expenses related to the Compensation Program. Section 4402(j) authorizes funds to be used for administrative expenses for fiscal year 1990 and 1991 for DHHS, DOJ, and the Claims Court.

The committee is concerned by the inadequate support and personnel that DHHS and DOJ have committed to the system and is disturbed by the failure of DOJ to make appearances and act as a representative of DHHS in these cases and the committee expects DOJ to return to its responsibilities to represent the government in these cases (to the extent that the government may require representation). The committee does not intend that these funds be used to substitute existing resources devoted to these programs and expects DHHS and DOJ to continue to provide at least the current level of support in addition to these authorizations. As is made clear by other sections of this report, the committee also does not intend that any of the three recipients of these authorized funds use them to prolong proceedings in a legalistic or unnecessarily detailed manner. These funds are provided to expedite the review and processing of information in order to simplify proceedings and allow for a quick resolution of claims.

(k) Rules Changes. Section 4402(k) requires the Claims Court to review its rules for vaccine proceedings and to make revisions in the rules in a manner conforming to the applicable law regarding issuance of rules and opportunity for public comment and consultation. The committee intends that the revisions provide for a nonadversarial, expeditious, and informal proceedings. The committee has received reports that the current rules of the Court are formal rules akin to those of the Federal Courts for civil litigation. The committee once more reiterates its desire that the Court make vaccine proceedings as swift and uncomplicated as possible.

(1) Study. Section 4402(1) requires that DHHS evaluate the National Vaccine Injury Compensation Program and report the results to the Committee on Energy and Commerce of the House and Committee on Labor and Human Resources of the Senate.

(m) Effective Date. Section 4402(m) provides that the changes made by these amendments apply to petitions filed after the date of enactment of this section. The committee intends that the Court interpret this provision broadly, allowing itself and the parties to use this legislation to expedite proceedings and to clarify confusion that may exist in petitions already filed. The committee recognizes that some confusion could arise, however, if rules changes were strictly enforced in pending claims and has provided this effective date to allow the Court to administer proceedings equitably.

Sec. 4403-Study by General Accounting Office with respect to Loss by Retired Individuals of Health Benefits due to Liquidation of Employer in Bankruptcy

Most Americans are insured through their employer by private group health insurance. The Consolidated Budget Reconciliation Act of 1985 included a requirement that employers with 20 or more employees that offer a group health insurance plan offer qualified employees and their families the option of continued health insurance at group rates when faced with the loss of coverage because of certain events. In the Omnibus Reconciliation Act of 1986, Congress added as a "qualifying event" a proceeding in a case under the bankruptcy provisions of Title 11 of the U.S. Code commencing on or after July 1, 1986.

Thus, under chapter 11 bankruptcy, employees' health benefits are somewhat protected. However, under chapter 7 bankruptcy, companies liquidate and pay off certain creditors, but employees' and retirees' continued health benefits have no guaranteed protection.

The committee directs the General Accounting Office to conduct a study to identify options for providing health benefits for any retired individual whose employer-provided health benefits are terminated because the employer receives a discharge under chapter 7 of Title 11, U.S. Code. The committee requests that the GAO examine a range of approaches and determine for each method the cost to the Federal and State governments; the cost to individuals; the extent of benefits to be provided; and the administrative structure required and its cost.

In addition, the committee has noted the increasing trend toward early retirement and the fact that one third of all retirees are now under age 65. Many companies in recent years have increased beneficiary cost-sharing and reduced benefits in an effort to limit cost increases to the former employers. The committee is directing GAO to also examine the extent to which employer-provided health benefits for retirees have been reduced since 1984 and to project trends in the near future.

APPENDICES

The following three appendices set forth specifications for the implementation of section 4001 of the committee bill. Section 4001 establishes a fee schedule, using a resource-based relative value scale, for making payments for physician services under Medicare. An explanation of how these appendices are to be used is set forth in the section-by-section analysis for section 4001.