The latest federal COVID-19 relief package, signed into law today, provides $484 billion in funding, including $310 billion for the Paycheck Protection Program, $50 billion for Economic Injury Disaster Loans, $75 billion for hospitals, and $25 billion for expanded COVID-19 testing.
Congress is expected to next begin considering longer-term economic stimulus measures. NAIFA supports three general buckets of economic recovery: Health Coverage, Retirement Security, and Life Insurance. Specifically, NAIFA is advocating for:
- Provide employers with temporary subsidies to preserve health benefits.
- Cover the cost of coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA).
- Expand use of Health Savings Accounts (HSAs).
- Open a special enrollment period for health insurance marketplaces.
- Increase eligibility for federal subsidies for the health insurance marketplaces.
Retirement Security (NAIFA supports the Insured Retirement Institute's five-part plan to help retirement savers)
- Increase required minimum distribution age for traditional IRAs and retirement plans to 75.
- Eliminate barriers to allow greater use of lifetime income products.
- Allow catch-up retirement contributions for those affected by COVID-19.
- Expand retirement saving opportunities for non-profit organization employees.
- Clarify the start-up tax credit to incentivize small businesses to join multiple employer plans and pooled employer plans.
Life Insurance (NAIFA supports tax law changes proposed by the American Council of Life Insurers)
- Index outdated rates in IRC Section 7702 to match today's interest rate environment and make financial protection available to more families.
- Classify bond investment holdings as ordinary instead of capital because they support ordinary liabilities of insurance companies.
NAIFA encourages insurance and financial professionals to contact their members of Congress in favor of these measures.