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Congress Gets Closer to Massive Tax/New Programs Bill Debate
President Biden’s “Build Back Better” initiative is underway on Capitol Hill. His American Jobs Plan (AJP) and American Families Plan (AFP) form the foundation of two pieces of legislation, moving in a three-part process. The overall initiative, if enacted into law, would create new spending programs (e.g., expanded Medicare and a federal family leave program), and raise taxes on corporations and on “the rich” (people earning more than $400,000/year).
The Senate finished work on the first of the three steps towards enactment of “Build Back Better” on August 10, when Senators approved a bipartisan traditional infrastructure bill. That bill incorporates many of the proposals in the AJP. That set the stage for a reconciliation bill—which will require only Democratic votes to pass—that would, if enacted, create new programs (e.g., a federal paid sick and family leave program and Medicare expansion) and would raise taxes to offset “almost all” of the $3.5 trillion cost. That bill, which will likely take until fall or longer to come together, is expected to include much of the AFP.
Authorization of a reconciliation bill—which will avoid Senate filibuster rules and thus allow the Senate to pass the measure with only 51 votes—comes in the second of this three-step process, a fiscal year (FY) 2022 budget resolution. Senate Budget Committee Chairman Sen. Bernie Sanders (I-VT) released his proposed budget resolution on August 9. It calls for a $3.5 trillion reconciliation bill and instructs the tax-writing Ways & Means and Finance Committees to produce a bill that “reduces the deficit” (i.e., raises taxes) by “at least $1 billion.”
The $1 billion figure is “a nominal amount,” Sen. Sanders said. It is designed to give the committees flexibility to craft the spending programs in their jurisdiction, and the tax increases that will pay for them. The budget resolution also forbids new taxes on individuals earning less than $400,000/year. The budget resolution requires the committees of jurisdiction to complete their work by September 15, 2021.
Prospects: The House must approve the Senate-passed budget resolution, but it is not a law and does not require a signature by the President. It can, and probably will, pass with only Democratic votes. Its provisions are guidelines, and not binding, but will heavily, if not definitively, influence the spending and tax decisions made by the committees of jurisdiction that will write the actual bills that Democrats will try to enact into law.
NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; Judi Carsrud – Assistant Vice President – Government Relations, at jcarsrud@naifa.org, or Michael Hedge – Director – Government Relations, at mhedge@naifa.org
Senate Approves Budget Resolution that Authorizes Reconciliation
On August 11, Senate Democrats, by a 50 to 49 vote, passed a Fiscal Year (FY) 2022 budget resolution that authorizes a $3.5 trillion reconciliation bill. The reconciliation bill embodies the second “human infrastructure” part of President Biden’s “Build Back Better” initiative. It is supposed to be fully offset mostly by corporate tax hikes and new taxes on “the rich.”
The budget resolution includes authorization for a federal paid leave program, Medicare expansion, long-term care supports for seniors and those with disabilities, “pro-worker incentives and worker supports” (i.e., the PRO Act), education initiatives including tuition-free community college, childcare programs, climate change provisions, and immigration reform provisions. The budget resolution also calls for relief from the state and local tax (SALT) deduction limit.
The budget resolution will not itself raise taxes or enact the spending programs. It will be the reconciliation bill that the budget resolution authorizes that creates the specifics of both the new spending and the tax increases.
Reconciliation bill: House and Senate Democrats have already begun work—in a big way—on the provisions that will go into the reconciliation bill, but the work will remain “on background” until after the budget resolution with its reconciliation bill authorization is passed. The specifics of what will go into the reconciliation bill are not yet known, but there is considerable information about what lawmakers crafting the legislation are discussing/negotiating. Those discussions/negotiations are bicameral, but only among House and Senate Democrats. The GOP is unified in its opposition to this reconciliation bill.
It is likely the reconciliation bill will include:
There will probably be other tax provisions, too—there is an effort underway (which may or may not succeed) to tuck two retirement savings provisions (an expanded Saver’s Credit and an automatic 401(k) program) into the bill. International tax rules are high on the target list, as is a provision lifting the limits on the state and local tax (SALT) deduction.
Enactment of the reconciliation bill is a complex task. A unified GOP promises to oppose it. So, Democrats will have to pass it with a unanimous partisan vote in the Senate, and a near-unanimous partisan House vote (only four Democratic “no” votes in the House would cause the bill to fail). The intra-party negotiations will be intense as progressives and moderates struggle over just how “big and bold” the legislation can be.
Prospects: The House must still vote on/approve the FY 2022 budget resolution. The House leadership has recalled House members to Washington early (August 23), however, it is possible that the House vote will come shortly after Labor Day. The House is not expected to dispute any of the provisions in the Senate-passed budget resolution.
NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; Judi Carsrud – Assistant Vice President – Government Relations, at jcarsrud@naifa.org, or Michael Hedge – Director – Government Relations, at mhedge@naifa.org
Infrastructure Bill Passes Senate, Heads to House
On August 10, the Senate approved a bipartisan traditional infrastructure bill that is the first of two parts of President Biden’s “Build Back Better” initiative. The vote was 69 to 30.
The $1.2 trillion traditional infrastructure bill (H.R.3684) embodies much of President Biden’s American Jobs Plan (AJP)—one of two pieces, along with the American Families Plan (AFP) that comprise the Biden “Build Back Better” initiative. The Senate-passed bill focuses on funding for building roads, bridges, rail, ports, etc., but also contains (as offsets to the bill’s cost) three provisions that may be of interest to some NAIFA members:
Now, this bill goes to the House, where there is an ongoing debate about whether to vote on it right away or to instead wait until the Senate sends a reconciliation bill to the House.
Prospects: The House is likely to approve, without changes (but with some grumbling), the Senate-passed H.R.3684. Timing on House action is unclear, but insiders on and off the Hill say it is almost certain that the bill will be enacted into law later this year.
NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; Judi Carsrud – Assistant Vice President – Government Relations, at jcarsrud@naifa.org, or Michael Hedge – Director – Government Relations, at mhedge@naifa.org
Action on Build Back Better Initiative Complicated by Government Funding, Debt Limit
The post-Labor Day Congressional agenda is a doozy—not only will lawmakers be addressing the “Build Back Better” legislation, but they must also deal with funding the U.S. government before October 1, or it will shut down; and with raising or suspending the federal debt limit, to avoid the U.S. defaulting on its obligations. All these issues are hotly controversial, with significant partisan implications.
Congress must, at pretty much the same time lawmakers are dealing with the Build Back Better legislation, pass bills to provide discretionary funding for the entire U.S. government. This must be done by the start of FY 2022 (October 1) to avoid a government shutdown. Government funding legislation will trigger familiar debates about how much spending the government will authorize, especially in light of skyrocketing deficits. Funding legislation is subject to the Senate’s filibuster rules, and so will require 60 votes—and thus bipartisan agreement—to pass. Failure to reach an agreement would trigger a government shutdown.
Also, on the must-do agenda in September is the need to raise (or suspend) the statutory debt limit. Treasury Secretary Janet Yellen has informed Congress that the U.S. will be out of sufficient money and without borrowing authority by late September/early October. Failure to increase the government’s borrowing authority would mean the U.S. would have to breach its full faith and credit, and default on some of its obligations—a potentially catastrophic result.
The debt limit issue is fraught—currently, Republicans are saying they will not vote for an increase in or suspension of the debt limit unless there are “spending reforms.” Democrats say, “no way.” Unless something changes, the debt limit cannot be a Democratic-only issue because it is not included in the budget resolution that authorizes a reconciliation bill (the only way a Democratic-only bill can pass the Senate by bypassing the Senate’s filibuster rules). That sets up a serious clash by late September/early October, when the Treasury is predicting the government will be out of both money and borrowing authority and therefore would have to default on its debts.
Prospects: The stage is set for an intense (and intensely busy) September/October. Expect short-term extensions of government funding and/or debt limit increases as Congress grapples with these divisive issues. Almost no lawmakers support a government shutdown or a debt limit-caused debt default, but there is deep disagreement on how to craft the legislation that will avoid these results. The reconciliation bill is in the middle of this situation, and it poses considerable risk to NAIFA issues. It’s going to be a wild and woolly fall for sure.
NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; Judi Carsrud – Assistant Vice President – Government Relations, at jcarsrud@naifa.org, or Michael Hedge – Director – Government Relations, at mhedge@naifa.org
Key Senate Tax Writer Proposes Changes to Pass-Through Business Income Deduction
The Wyden bill would limit the Sec. 199A deduction to the smallest of three calculations: 20 percent of $400,000 (the threshold amount), the taxpayer’s qualified business income, or the taxpayer’s taxable income reduced by net capital gains. Married taxpayers would have to file jointly to qualify for the deduction; those who file separately would not be able to take the deduction.
The bill would also expand the number and types of businesses (S corporations, partnerships, and sole proprietorships) that can qualify for the newly-capped pass-through business deduction by removing exclusions of specified trades or businesses with more than $315,000 of joint income.
The Wyden proposal is expected to raise substantial federal revenue by preventing large Subchapter S corporations and partnerships from qualifying for the deduction. However, an official revenue estimate is not yet available. The current provision and the Wyden proposal are both set to expire in December 2025.
Prospects: Sen. Wyden says he will try to include his Sec. 199A proposal in the upcoming reconciliation bill. As chairman of the tax-writing Finance Committee, his chances of doing so are better than ever. Generally, Democrats dislike the Sec. 199A deduction—some would prefer to repeal it altogether. And since the reconciliation bill is likely to attract no GOP votes, Republican opposition to the measure is likely to have little to no impact on the outcome.
NAIFA Staff Contact: Judi Carsrud – Assistant Vice President – Government Relations, at jcarsrud@naifa.org
SBA Accelerates Loan Forgiveness Process
On July 28, the Small Business Administration (SBA) announced in an interim final rule a new process for applying for and receiving Paycheck Protection Program (PPP) loan forgiveness. The new procedure allows lenders to opt into an alternative program that permits borrowers to go directly to the SBA to apply for loan forgiveness, rather than going through their lenders.
In RIN 3245-AH79, the SBA said borrowers of loans of $150,000 or less—93 percent of the outstanding PPP loans—could submit their applications for loan forgiveness directly to the agency, bypassing the otherwise-required first step of going through their lenders. The SBA said this new process would speed up the forgiveness process and reduce the burden on lenders to service PPP loan forgiveness applications.
The new process applies to all PPP loans, including those made in 2020 and second-draw loans made in 2021. The interim final rule also allows lenders to use a streamlined method for documenting second-draw loan borrowers’ revenue reduction (the COVID Revenue Reduction Score). Further, the rule extends loan repayment deferrals for PPP loans that are currently under appeal at the SBA.
Prospects: This new process is designed to make achieving loan forgiveness easier and quicker. The SBA is trying to close out the COVID relief era program as quickly and efficiently as possible, the agency said.
NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; Judi Carsrud – Assistant Vice President – Government Relations, at jcarsrud@naifa.org, or Michael Hedge – Director – Government Relations, at mhedge@naifa.org
Senior Tax Writer Introduces Senate Bill to Allow Use of Retirement Funds for Long-Term Care Insurance
On July 22, Sen. Pat Toomey (R-PA), a senior member of the tax-writing Senate Finance Committee, introduced legislation to allow people to use some of their retirement account funds to pay for long-term care insurance. The Long-Term Care Affordability Act would allow individuals to pay up to $2,500 each year for long-term care insurance with their 401(k), 403(b), and/or IRA funds without either income tax or the ten percent early withdrawal penalty tax.
The Toomey bill does not include some long-term care insurance riders on permanent life insurance policies in the universe of long-term care insurance that can be purchased with retirement account funds, if there is an inability to separately account for the cost of the riders. NAIFA is working with Sen. Toomey to expand his bill to allow life insurance policy long-term care riders to be purchased with tax-free retirement funds.
Prospects: There is considerable interest among lawmakers from both parties and in both chambers of Congress in addressing the growing issue of the affordability of and access to long-term care for America’s seniors. Whether this interest will translate into enacted legislation remains to be seen—all the solutions offered thus far, including this new Toomey bill—will cause a revenue loss. And in these times of soaring deficits, pandemic-induced extraordinary needs, and stiff competition from other socially desirable new programs, it may take more time to win enactment of ways to help afford long-term care.
NAIFA Staff Contacts: Judi Carsrud – Assistant Vice President – Government Relations, at jcarsrud@naifa.org, or Maeghan Gale – Policy Director – Government Relations, at mgale@naifa.org
Employers Offering 401(k) Plans Must Provide Lifetime Income Illustrations Next Year
Employers that offer their employees 401(k) plans will have to provide, by next summer, their employees with an annual illustration estimating how much monthly retirement income, paid out over the worker’s lifetime, their account balances might provide. This is known as “the LIDA (an acronym derived from the Lifetime Income Disclosure Act, on which the SECURE rules are based) requirement.” The Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) has issued new guidance on how to comply with this requirement.
On July 26, EBSA posted four frequently-asked-questions (FAQs) and answers to further explain the interim final rule (IFR) on the LIDA requirements. The IFR was issued last September.
The lifetime income disclosure rule was enacted late in 2019 in the SECURE Act. The rule requires employers to provide their employees participating in a 401(k) plan with illustrations showing how much lifetime monthly income the participant can expect from the participant’s account balance as of the time of the illustration. The rule allows for two illustration options, one applicable to a single life income stream and the other applicable to the lifetime income stream to be received by a married participant who elects a survivor benefit.
Generally, EBSA said, “Participant-directed retirement plan sponsors that issue quarterly balance statements will have until the second calendar quarter of 2022 (i.e., June 30, 2022), to include at least one lifetime income illustration in their statements. Employers that control participant investments must include both illustrations on the annual statement for the first plan year ending on or after Sept. 19, 2021. For most calendar-year plans, that time frame extends to Oct. 15, 2022.”
The four FAQs provide clarification on the IFR’s effective date and its proposed sample LIDA disclosures. EBSA says in the FAQs that forms of LIDA illustrations other than those delineated in the IFR can be permissible. Those alternatives could include “in some cases illustrations of the type contemplated” by DOL’s 2013 advance notice of proposed rulemaking (ANPR).
Prospects: DOL has not said when it will finalize the interim final rule but has said other ways of complying with the income disclosure rules would be permissible. The agency also said it is sensitive to concerns that there be appropriate consideration given to transition time needed if the final rules materially differ from the interim final rule.
NAIFA Staff Contact: Judi Carsrud – Assistant Vice President – Government Relations, at jcarsrud@naifa.org
IRS Issues Pension Plan Funding Rules
On July 30, the Internal Revenue Service (IRS) issued guidance (Notice 2021-48) on changes to defined benefit (DB) plan funding rules as enacted this past March in the American Rescue Plan Act (ARP). The ARP changed the minimum funding requirements and benefit limits by extending the amortization period for shortfalls for plan years beginning after December 31 (or earlier if the plan sponsor so elects).
The new funding plan corridors are 95 percent to 105 percent (changed from 90 percent to 110 percent) for plan years beginning in 2020 through 2025. Notice 2021-48 provides that for plan years beginning after December 31, 2020, shortfall amortization bases are amortized over 15 years. The Notice eliminates the shortfall amortization bases for plan years beginning earlier than December 31, 2020. Also, the guidance states, plan sponsors can choose to have the rule apply to plan years beginning after December 31, 2018, December 2019, or December 2020.
Prospects: The change to DB plan funding requirements raised revenue in the ARP. Further changes are expected to raise more revenue. Such a change is currently in the Senate version of the bipartisan traditional infrastructure bill. It appears likely that the bill will pass, although it may take some time before the House votes on it.
NAIFA Staff Contact: Judi Carsrud – Assistant Vice President – Government Relations, at jcarsrud@naifa.org
IRS Issues ERTC Guidance for the Rest of 2021
On August 4, the Internal Revenue Service (IRS) and Treasury Department released new guidance on how to claim the employee retention tax credit (ERTC) for the third and (if applicable) fourth quarters of 2021.
The guidance, Notice 2021-49, reflects the current state of ERTC law, as enacted earlier this year in the American Rescue Plan. The credit is available to employers who kept their employees on the payroll despite significant losses of revenue during the pandemic. The ERTC can be worth up to $28,000 per employee kept on the payroll in 2021.
Congress is currently considering legislation—a bipartisan traditional infrastructure bill—that would offset some of the cost of the infrastructure bill by accelerating the expiration of the ERTC. Under current law, the ERTC is set to expire at the end of 2021. Under the provision in the infrastructure bill, the ERTC would expire as of September 30, 2021.
The IRS and Treasury noted in the guidance that the agencies are monitoring the potential for a change in the law that would eliminate the ERTC for the fourth quarter of 2021. Guidance on the ERTC for the first two quarters of 2021 was issued in April, in Notice 2021-23.
Prospects: Lawmakers say that the ERTC has not proven to be popular among the businesses it was supposed to help, and so shutting it down early is justified (and raises much-needed revenue to offset the cost of the infrastructure bill). So far, there appears to be little opposition to the early expiration provision, and so it is likely to become law if the traditional infrastructure bill in which it is embedded becomes law. The Senate has passed the infrastructure bill, but the House has not yet taken it up.
NAIFA Staff Contact: Judi Carsrud – Assistant Vice President – Government Relations, at jcarsrud@naifa.org
Proposed PEP Consolidated Returns Rule Awaits White House Approval
On July 30, the Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) sent to the White House for review a proposed rule governing the consolidation of annual disclosures required of employers who join a PEP (pooled employer plan). It is the Office of Management and Budget’s (OMB’s) Office of Information and Regulatory Affairs (OIRA) that is reviewing the proposed rule. EBSA will release the proposed rule, if and as approved by OIRA, soon after receiving it back from OIRA.
Among the benefits of a PEP is authorization for the PEP to consolidate and file required annual disclosure statements on behalf of all of the PEP’s participating employers. Per the statute (the SECURE Act of 2019) that created the PEP rules, retirement savings plans (like, for example, 401(k) plans) that have similar investments and timetables, and that use the same trustees, named fiduciaries and administrators (i.e., a PEP) can file a single Form 5500. Form 5500 collects details about a plan’s financial condition, investments, and operation.
Prospects: The timing on this proposed rule is tight. It usually takes OIRA several weeks, at least, to review a proposed rule (although the tight timeframe may cause OIRA to act more swiftly than usual). The SECURE Act requires DOL/EBSA to finalized consolidated report regulations by January 1, 2022. The proposed rule will have to provide a public comment period, and there will have to be time for EBSA to consider any comments it receives, before the statutory deadline of January 1. So, expect OIRA approval and EBSA release of these proposed rules fairly soon.
NAIFA Staff Contact: Judi Carsrud – Assistant Vice President – Government Relations, at jcarsrud@naifa.org
SEC Commissioner Warns against ESG Disclosure Requirements
On July 20, Republican Securities and Exchange Commissioner (SEC) Hester Peirce warned against an “inherently political” SEC rulemaking on ESG (environmental, social, and governance issue) disclosures. Peirce said such a rulemaking goes beyond the SEC’s mandate, and the issue should be left to Congress.
Speaking at a Brookings Institution discussion on ESG issues, Peirce said an SEC rulemaking on ESG disclosures would raise “serious democratic legitimacy concerns.” She said the issue should be up to Congress, state legislatures, and civil society organizations, not the SEC.
New SEC Chairman Gary Gensler, a Democrat, has said ESG disclosure mandates are a top priority for the SEC. The issue appears to be particularly partisan, with Congressional Democrats generally in support of ESG disclosure requirements and Republican lawmakers questioning whether such disclosures are necessary.
Peirce said that Congress has not explicitly authorized the SEC to promulgate ESG rules and added that such rules promote goals that are not related to federal securities laws. Those laws—and SEC regulations under them—are “intended to protect investors, ensure well-functioning markets, and facilitate capital formation,” she said.
Prospects: The SEC is expected to propose ESG disclosure rules by this fall. The rules are expected to require companies to report on climate change risks, board diversity, and companies’ workforces.
NAIFA Staff Contact: Michael Hedge – Director – Government Relations, at mhedge@naifa.org
IRS Allows Tax Credit for Paid Leave to Get COVID Vaccine
On July 29, the Internal Revenue Service (IRS) and Treasury announced that American Rescue Plan (ARP) tax credits are available to large as well as small employers that provide paid leave to employees getting a COVID vaccine or taking a family member to get the vaccine. This is an expansion of previous ARP guidance that allowed the tax credit for paid leave to get COVID vaccinations to employers with fewer than 500 employees.
The tax credit also covers payment for leave to recover from or care for a family member recovering from the shot, the IRS/Treasury said.
The new guidance is in the form of frequently asked questions (FAQs) posted on the IRS website.
NAIFA Staff Contact: Judi Carsrud – Assistant Vice President – Government Relations, at jcarsrud@naifa.org
NAIFA-CT Secures Unlimited Protection from Creditors for the Cash Value of Life Insurance
Over the last two years, NAIFA-CT worked diligently with state legislators supporting legislation to provide Connecticut residents unlimited protection from creditors of the cash value of life insurance. The bill ran unopposed through a public hearing in June. It then passed the House and Senate, and on July 12, and Gov. Ned Lamont signed it into law.
Connecticut HB 6466 is effective October 1. It mirrors Connecticut’s surrounding states on the cash value amounts protected from creditors. Currently, Connecticut only protects $4,000, and this bill will protect the total value unless the policy was (a) assigned to, or effected for the creditor’s benefit, or (b) purchased, sold, or transferred with the intent to defraud the creditor.
“The adoption of HB 6466 is a huge accomplishment for NAIFA-CT and a great attestation to the chapter’s advocacy strength,” said Julie Harrison, NAIFA State Chapter Director. “We are very excited about this news and appreciate the hard work from the NAIFA-CT members who helped make this happen.”
NAIFA Staff Contact: Julie Harrison– State Chapter Director– Government Relations, at jharrison@naifa.org
NAIFA Experts Testify on the Importance of Independent Contractor Status at NCOIL
NAIFA is an active participant in interstate advocacy efforts, including working with groups like the National Council of Insurance Legislators (NCOIL) to create policies and model regulations that protect the interests of consumers and preserve the ability of producers to provide products, services, and advice that help Main Street Americans achieve financial security.
Most recently, Josh O’Gara, CLU, ChFC, CFP, a NAIFA-MA President, and NAIFA Policy Director, Maeghan Gale, testified at the NCOIL 2021 Summer Meeting in Boston to provide the producers' perspective on the Protecting the Right to Organize (PRO) Act and also to talk about the importance of independent contractor status for independent broker-dealers and independent financial advisors.
The PRO Act would amend the National Labor Relations Act by adding language that expands the definition of “independent contractor” by adopting an “ABC” test to define who is an “employee." This worrisome “ABC” test is gaining traction beyond the PRO Act on both the state and federal levels, and if it were to become a model, it could negatively harm the way insurance carriers and producers best see fit to maintain their business structures. Producers could be caught in a quagmire of conflicting and uncertain employment status.
NAIFA members are professionals who generally operate their own small businesses. In a survey of NAIFA members conducted earlier this year, respondents overwhelmingly opposed attempts to reclassify them as employees. According to the survey:
O’Gara and Gale provided expert testimony to the Joint State-Federal Relations & International Insurance Issues Committee at the NCOIL meeting.
In his testimony, O’Gara gave personal insights as a licensed financial professional into how operating as an independent contractor contributes to his success as a business owner and gives him the freedom and flexibility to serve the best interests of his clients.
NAIFA Staff Contact: Maeghan Gale – Policy Director – Government Relations, at mgale@naifa.org
Bill to Reform Index-Linked Annuities Registration Reintroduced
A bipartisan bill to direct the Securities and Exchange Commission to issue a new form for annuity issuers to use when filing registered index-linked annuities has been reintroduced in the House.
Under current SEC rules, registered index-linked annuities and other new products must be registered using forms designed primarily for equity offerings and therefore require extensive information that is not relevant to prospective annuity purchasers. These forms also require disclosure of financial information prepared in accordance with generally accepted accounting principles, which many insurers are not otherwise required to produce.
The bill is aimed at addressing the misalignment between the current registration forms used for registered index-linked annuities, and the information needed by investors who might benefit from purchasing these products.
The Registration for Index-Linked Annuities Act was last introduced in May 2020 during the previous congressional session.
Prospects: Although RILA was introduced in both the House and Senate during the previous congressional session, the companion bills remained in committee without action being taken due to the focus in the last Congress on Covid relief. Currently, NAIFA is working with coalition members to identify bill co-sponsors in the House and build support for the legislation. Coalition members are also working on securing Senate introduction.
NAIFA Staff Contact: Michael Hedge – Director – Government Relations, at mhedge@naifa.org
GAO Audit Finds Health Agents Act Appropriately
Agents and advisors are an important resource for consumers seeking affordable health care plans that suit their individual needs. These professionals have the expertise and experience to help individuals and families navigate the complicated health care system and compare plan options.
Now, a new study from the Government Accountability Office (GAO) confirms that advisors provide useful, trustworthy guidance. The GAO used undercover investigators to contact advisors. They found that "each of the sales representatives listed on healthcare.gov contacted appropriately referred undercover investigators to a PPACA-compliant plan.
The majority of sales representatives also explained to undercover investigators that a PPACA-exempt plan would not cover our pre-existing condition. None of the sales representatives contacted engaged in potentially deceptive marketing practices that misrepresented or omitted information about the products they were selling." The GAO reported its findings to Sen. Robert P. Casey, Jr., (D-PA), Chairman of the Special Committee on Aging, and Sen. Debbie Stabenow (D-MI), Chair of the Senate Finance Committee's Subcommittee on Health Care.
NAIFA Submits Comments on Public Option Health Care with Lawmakers
NAIFA submitted comments on July 31 to Rep. Frank Pallone (D-NJ) and Sen. Patty Murray (D-WA) in response to a request by the lawmakers for information on potential legislation to develop a public health insurance option.
While NAIFA shares the goal of expanding access to affordable and quality healthcare to all Americans, we do not support a public option. NAIFA firmly believes in the integrity of the employer-sponsored insurance (ESI) system and the ability of employers to select coverage options that fit the unique needs of their employees.
NAIFA believes that a public option entails serious drawbacks – whether the program is designed as another plan to be offered in the Affordable Care Act’s Marketplace, as an expansion of Medicare that allows buy-ins from individuals younger than the current eligibility age of 65, or as a “Medicare-for-all” plan – the implementation of this policy could result in detrimental effects on Americans’ finances and destabilize the health care markets.
Prospects: This type of inquiry is usually a precursor to legislation being introduced. And while unlikely, there is authority in the budget resolution to allow those age 55 or 60 to buy into Medicare.
NAIFA Staff Contact: Michael Hedge – Director – Government Relations, at mhedge@naifa.org
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