September 2015 NADPac report

NADPac Report September 2015

In this issue: Washington Insider PAC FACTS NADPac Stats NADPac Contributors & Committee

Political Action Committee

NADPac Report

September 2015

Washington Insider Capital Updates with Lisa Layman

A late Labor Day and thus late ‘back-to-school’ for Congress, along with religious holidays and Pope Francis’s historic address to a joint session of Congress on September 24, leave only about a dozen legislative days for Congress to complete work on several pressing items.

At the time of our last Capital Updates, the Supreme Court had recently issued its decision upholding the Affordable Care Act’s subsidies to individuals in federal exchanges. The decision was quickly followed by Republican vows to nonetheless fulfill campaign promises to repeal Obamacare in its entirety.

As July ticked by and the path to full repeal became no more clear, the conversation among members of the Republican leadership shifted to repealing “as much as possible through the reconciliation process this year” or simply producing a list of the most-despised mandates and taxes.

In August, there was barely a whisper of repeal or use of the fast-track budgetary process known as reconciliation, which allows a bill to pass with only 51 votes instead of 60. That whisper was a suggestion that reconciliation may not happen at all this year, but could be pushed to 2016.

Congress in Holding Pattern: Missing Key Factors to Take Action In order to act on a significant policy and/or political goal, Congress generally needs at least three of the four following things: a looming deadline, an agreed-upon plan of action by the Majority party, strong bipartisan support and time in the legislative calendar.

For the time being, they have none of the above.

The Supreme Court’s decision removed the need for immediate action. The GOP faces divisions between the moderate and hard-line wings of its party, between their House and Senate members, and between members facing election next November in safe districts/ states and those in blue or purple districts/states. Bipartisan support is nonexistent.

And, as far as days available for significant action on the Affordable Care Act (ACA), it is nearly inconceivable in September. During the approximately 12 legislative days between Labor Day and the end of the month, Congress must debate and vote on the Iran nuclear agreement resolution, the most highly-charged foreign policy vote in at least a decade, and find consensus on a short-term measure to continue funding the government beyond September 30 (i.e., attempt to avoid a government shutdown threatened both by conservative calls to defund Planned Parenthood and by Democratic opposition to the Republican budget’s inclusion of automatic cuts to domestic spending in the face of increased war funding).

PAC FACTS

So far in the 2015-16 election cycle, NADPac has contributed approximately $7,000 to five congressional campaigns. Below is a summary of to whom NADPac made its contributions: Senator Orrin Hatch (UT) is the Chairman of the Senate Finance Committee and serves on several other committees including Judiciary and Health, Education, Labor and Pensions (HELP).

Representative Ron Kind (WI-3): representing Wisconsin’s 3rd District, Ron Kind is a member of the House Ways and Means Committee where he also serves on the Health and Trade Subcommittees.

Senator Patty Murray (WA) was first elected to the Senate in 1992, becoming Washington state’s first female senator. She is a member of several Senate Committees including Appropriations, Budget and HELP where she serves as ranking member.

Senator Charles E. Schumer (NY) serves on several Committees including Rules and Administration; Judiciary; Banking, Housing and Urban Affairs; and Finance.

Senator Pat Toomey (PA) serves on the Committee on Budget and the Committee on Finance where he is Chair of the Health Care Subcommittee. Before joining the Senate in 2011, Senator Toomey served in Congress as a member of the House of Representatives from Pennsylvania’s 15th District.

NADPac Report September 2015 Assuming a government shut-down is averted, the likelihood for action on ACA measures increases after September, though not by leaps and bounds. Must-do items before the end of the year include an increase in the debt ceiling, the now-annual extension of individual, business and energy tax provisions and providing government funding for the first nine months of 2016. Cybersecurity and the Highway Trust Fund also demand action.

Concerns over Cadillac Tax & Small Group Loom Should the Republican majority resolve their internal party politics and find a spare legislative day in 2015, they could send a full repeal vote to the President, who would surely veto it. The leaders could also attempt to pass discrete bipartisan measures with the goal of changing policy. Opposition to the so-called “Cadillac tax” continues to grow amid recent concerns that Flexible Spending Accounts (FSAs) could be a casualty. However, the high price tag to repeal (approx. $90 billion), complicated politics (Republicans offer similar proposals to curb health care costs), and the lack of urgency (the tax does not go into effect until 2018; readers should recall Congress’s need for a pressing deadline) make it unlikely this year.

One potentially likely ACA “fix” for this year is the definition of the small group market. The ACA defines the small employer market to include employer groups of 2-100 employees beginning in 2016. January 2016 will begin to loom for Congress within a couple of months. Unfortunately, the deadlines for action tend to be statutory deadlines, not practical deadlines that exist for insurance companies and state regulators. Legislation to return the definition to 2-50 employees with a state option to expand is gaining bipartisan support. Shortly before the August recess, the Senate bill picked up the support of Sen. Chuck Schumer (NY). Hailing from the progressive wing of the Democratic Party and as second-ranking Democrat on the Finance Committee and the heir-apparent for the top Senate Democratic post in 2017, Schumer’s support is significant. He joins seven other Democrats on the bill.

While the Republican leadership will continue to hammer out whether, when and how to repeal the ACA in a significant way, they may agree to take a piecemeal victory in the meantime and find some time on the calendar to “repeal and replace” the definition of the small group market.

Any ACA ‘fix’ opens the door to additional fixes. NADP continues to actively engage 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.

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 U.S. 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.

PAC Stats

Year 2015 NADPac Figures: Beginning cash balance 1/1/15: $20,680.13 Closing cash balance 9/10/15: $22,730.13 Contributions from individuals: $2,050 Contributions from PACs: $7,000 Disbursements to federal candidates: $7,000

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 Bruce Hentschel, Principal Financial Group

• • • • • •

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

ACTION

in

>>>>>>>>>>>

the dental benefits industry’s advocacy fly-in

For more information, please visit

January 27-28, 2016 Washington • DC nadpadvocacy.org (in conjunction with NADP Leadership Conference)

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