July 2015 NADPac Report

NADPac Report July 2015

In this issue: Washington Insider July 14 Webinar Reactions to King v. Burwell NADPac Stats NADPac Contributors & Committee

Political Action Committee

NADPac Report

July 2015

Washington Insider Capital Updates with Lisa Layman

The hottest website in Washington on the morning of June 25 was undoubtedly SCOTUSblog (Supreme Court of the United States Blog) a public blog which reports on Supreme Court cases. The almost 62,000 users following the live blog, doubtless the majority being politicos and policy wonks from inside the Beltway (including NADP staff), were anxious to see if the Court would issue its decision that morning on the ObamaCare subsidy case - King v. Burwell.

Shortly after 10am the decision was issued, upholding premium subsidies for individuals enrolled in federal health insurance marketplaces. Democrats, led by the President, cheered that “the Affordable Care Act is here to stay.”

Republicans also cheered—but privately. A legislative plan that the GOP could coalesce around should federal exchange subsidies be overruled had eluded them for months (i.e. whether and how to fix the situation and respond to more than 6 million enrollees in 34 federal-marketplace states losing subsidies, states which are largely represented by Republicans.) The Court also ensured that the Affordable Care Act (ACA) will remain front and center for the 2016 Presidential and Congressional elections. With Hillary Clinton as the likely Democratic nominee, opposition to ObamaCare/HillaryCare is a potent campaign issue. Republicans have turned to the elections for a continued platform to call for repeal, without the pesky need for a detailed alternative.

The Republican presidential candidates (14 and counting with the recent entrance of N.J. Governor Chris Christie) as well as the House and Senate Republicans up for re-election in 2016 and concerned about primary challenges from the right lost no time in reiterating their calls to ‘repeal and replace.’ The first GOP presidential debate is less than a month away in Cleveland; expect to hear loud calls for ‘repeal’ and few details on ‘replace.’

Notwithstanding the continued election-based calls for repeal, Congress will soon consider how to act with respect to the Affordable Care Act this year. Members on both sides of the aisle were reluctant to embrace the ACA reforms while waiting for the Supreme Court to rule. But now, with calls from Republican-leaning, heavy-weight groups like the Chamber of Commerce and the National Coalition on Benefits for Congress to make “fixes” short of full repeal, there is a growing sense of a window of opportunity for meaningful and needed technical changes.

The high-profile issues continue to be: the medical device tax, the health insurance tax, the excise “Cadillac” tax, the Independent Payment Advisory Board (IPAB), 30-hour work week, expansion of the small group market, and the Essential Health Benefits package.

But in addition to those high-cost, high-political stakes items, there are a raft of others under development and discussion. Every group touched by the ACA – from the American Heart Association to the National Retail Foundation (and the National Association of Dental Plans!) has a wish list of improvements, fixes, targeted repeals and targeted expansions.

President Obama has said he is open to bipartisan changes but has made clear through repeated veto threats that he will not sign GOP-only policies that will fundamentally alter his signature domestic achievement. His Secretary of Health and Human Services recently said the Administration will judge proposed changes by whether they improve affordability, access, quality and their impact on the economy.

Will the Republican-led Congress use the fast-track legislative procedure known as Reconciliation, which allows a bill to pass with only 51 votes instead of 60, to repeal the law in its entirety or to repeal pieces such as the individual and employer mandates? There is no question that if the Reconciliation process is used to repeal the ACA in whole or in significant part, then it will be vetoed by the President. Alternatively, if the GOP-controlled Congress looks for a bipartisan ACA “fix” bill (ignoring the conservative wing of the party) that will be signed by the President, what policies will the Democrats demand be included or excluded to gain their support?

Congress has a relatively short window to act on bipartisan improvements to the health law. Fewer than four weeks remain before they break for the month of August. The remainder of the year will go quickly with the need to fund the government for fiscal year 2016 and other time-sensitive priorities. And by February or March of next year, when the primary season is in full swing, all eyes will be on the November elections.

NADP has continued to be actively engaged with key Congressional offices in anticipation of the right set of circumstances to enact changes beneficial to the industry. NADPac can be a powerful tool; industry-sponsored events offer valuable opportunities for focused, thorough, and thoughtful discussion of the issues impacting NADP members today and in the future.

Lisa Layman of Brown Rudnick represents NADP on Capitol Hill and has over two decades of experience in political and legislative affairs, and a comprehensive knowledge of health policy issues. As a senior policy advisor to several US Senators, Lisa has been involved in drafting, analyzing and negotiating legislation involving private health insurance, Medicare, Medicaid, prescription drugs, managed care, and health information technology.

NADPac Report July2015

Reactions to King v. Burwell

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Trade groups, providers & policymakers react to Supreme Court decision allowing subsidies in Federal Marketplaces “The Supreme Court has ruled on two key challenges to the Affordable Care Act, and it is time to direct attention to needed reforms of the law, such as eliminating the medical device, employee benefits and health insurance taxes, repealing the Independent Payment Advisory Board and loosening the grip of employer mandates that only serve to drive up the cost of coverage.”

–National Association of Manufacturers Vice President of Human Resources Policy Joe Trauger.

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“[The] ruling failed to hold the Obama Administration responsible for its reckless execution of its own poorly-crafted law,” Senate Finance Committee Chairman and Senator from Utah Orrin Hatch said. “Moving forward, [Republicans] will continue to seek input on our legislative proposal – the Patient Care Act – and use every opportunity available to give both states and patients more freedom and flexibility.”

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In a statement, Marla Weston, CEO of American Nurses Association says nurses “are pleased that the Supreme Court chose to preserve access to affordable health coverage,” explaining further, “it’s time to look to the future and focus on how we can make even more progress.”

“ NADPac Stats Year 2015 NADPac Figures: Beginning cash balance 1/1/15: $20,680.13 Closing cash balance 6/30/15: $26,480.13 Contributions from individuals: $1,800 Contributions from PACs: $7,000 Disbursements to federal candidates: $3,000

“It’s a clear-cut case of the Supreme Court being willing to bend the law backwards to preserve Washington’s involvement in the insurance market and marks the second time in three years the Roberts Court has creatively rewritten history to preserve President Obama’s signature legislative achievement.”—Heritage Foundation President and former U.S. Senator from South Carolina, Jim DeMint.

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Rich Umbdenstock, CEO of the American Hospital Association, calls the ruling a "significant victory for protecting access to care for many of those who need it" and continuing to improve "the health and well-being of individuals, family and communities."

“With the certainty provided by the Supreme Court’s decision, now is the time to focus on what matters most to consumers – ensuring access to affordable coverage and high-quality health care. Health plans will continue to lead in advancing this goal.”—AHIP Interim CEO Dan Durham.

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Year 2014 NADPac Figures: Beginning cash balance 1/1/14: $15,630.13 Closing cash balance 12/31/14: $20,680.13 Contributions from individuals: $2,050 Contributions from PACs: $17,000 Disbursements to federal candidates: $14,000

NADPac Contributors

The following individuals and corporate PACs have contributed funds to support NADPac efforts in 2015.

NADPac appreciates the support of these contributors:

• • • • • •

Stacia Almquist, Assurant Employee Benefits Charles Brody, Blue Cross Blue Shield of South Carolina Rob Goren, Delta Dental of Missouri Guardian Life Federal PAC Kris Hathaway, NADP Evelyn Ireland, NADP

• • • • •

Theresa McConeghey, Principal Financial Group Kate McCown, Ameritas Principal PAC Gene Sherman, Starmount Life Insurance Company Chris Swanker, Guardian Life Insurance Company

Post-Supreme Court: ACA Issues and Medicaid Changes on the Horizon Webinar on Tuesday, 7/14/2015 at 1:00 PM (CDT) With the monumental Supreme Court decision on King v. Burwell in the rear view mirror, attention now turns to impending HHS rules and legal issues impacting doing business in Medicaid and Exchange markets in the future. Join Joanne Zimolzak, partner in the insurance practice at Dentons, and Dennis Smith, Principal at Dentons and previously the longest serving Medicaid Director in CMS history, for an in-depth look at regulatory changes and policy discussions on provider networks, quality improvement projects and public programs which could impact dental plan activities related to compliance and improving access and outcomes.

Register online, purchase recordings and learn more @

knowledge.nadp.org

NADPac Comittee Contributions to federal candidates are overseen by the NADPac Committee, which meets several times a year. The Committee is appointed by the NADP Board to be representative of NADP membership.

Charles Brody VP of Business Development Blue Cross Blue Shield of SC

Chris Payne VP of Federal Government Relations Principal Financial Group

Suzanne Heckenlaible VP of Public Affairs Delta Dental of IA

Jon Seltenheim Sr. VP of Business and Government Strategy United Concordia Companies, Inc.

Evelyn Ireland, CAE NADP Executive Director and NADPac Treasurer eireland@nadp.org

NADP Staff Liaisons: Kris Hathaway Government Relations Director, NADP khathaway@nadp.org

Michael Lewan The Michael Lewan Company

Eme Augustini State Affairs Manager, NADP eaugustini@nadp.org

James Mullen Public and Government Affairs Manager Delta Dental of CA, NY, PA & Affiliates

Advisor: Lisa Layman Principal, Government and Law Strategies

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For more information, please contact

Evelyn F. Ireland, CAE • eireland@nadp.org Executive Director & NADPac Treasurer National Association of Dental Plans P 972-458-6998 x101 12700 Park Central Dr, Ste 400 Dallas, TX 75251-1529