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1 The ERISA Industry Committee Washington Update: July 23, 2012.

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Presentation on theme: "1 The ERISA Industry Committee Washington Update: July 23, 2012."— Presentation transcript:

1 1 The ERISA Industry Committee Washington Update: July 23, 2012

2 2 Participation Procedure Procedure for audience participation Audience will be in a “listen-only” mode If you wish to ask a question or make a comment, press *6 on your telephone to “un-mute” your telephone After speaking, please press *6 again to re- enter “listen-only” mode

3 3 Washington Update Agenda Welcoming Remarks –Scott Macey, new President and CEO of ERIC Amicus briefs Comments from Marty Reiser –Ways & Means Professional Staff Health Update Retirement Update Concluding Remarks/Questions

4 Amicus Briefs Frommert v. Conkright (Xerox case in 2nd Circuit ) –ERIC is supporting brief to be filed this Friday –Key Issues Deference to administrator decisions Required SPD level of details Relevance of participant expectations

5 Amicus Briefs, cont. US Airways v. McCutchen (Supreme Court) –Amicus brief support requested no decision yet –Key Issues Application/limitation of subrogation provision Equitable remedy of plan reformation

6 The SCOTUS decision on the Affordable Care Act ACA in essence upheld –Individual mandate not OK under Commerce Clause But OK under power of Congress to tax –Medicaid expansion Expansion not unconstitutional BUT feds cannot force states to expand by withholding existing Medicaid funds

7 The SCOTUS decision: the impact on employers Impact of the Medicaid change –States may opt out for financial and/or political reasons Significant effect on coverage of uninsured and, thus, costs of uncompensated care Direct effect on employer “shared responsibility” penalty under ACA –Intertwined with question of whether federally run Exchanges may offer premium subsidies

8 The SCOTUS decision: the aftermath November elections –Will one party take control of the White House and Congress??? Impact on ACA could be huge if R’s have total control Other legal challenges

9 Health Legislation House votes to repeal the ACA (HR 6079) –33 rd attempt to fully or partially repeal ACA –5 D’s join all R’s to repeal –No action by Senate likely

10 Health Legislation, cont. House votes to approve HR 436 –Repeal 2.3% medical device tax –Permit reimbursable purchase of OTC drugs without prescription –Allow up to $500 of FSA funds to be distributed rather than forfeited Senate action unlikely, although some bipartisan support for bill

11 Health Regulations Still awaiting guidance on several key issues –Full time/part time employee definition –Coordination with waiting periods –Employer shared responsibility provisions –Minimum value –Affordability –Cadillac tax –Reinsurance Meeting with government 7/20

12 Health Regulations, cont. Transitional reinsurance program –ACA requires contribution from insurers and self- insured plans for three years –Intended to partially offset costs of insurers for insuring high-risk individuals –$12B in 2014 –$8B in 2015 –$5B in 2016 –Big question: how will yearly fee be apportioned? Also reporting concerns

13 Health Regulations, cont. DOL EBSA civil enforcement projects –Greater emphasis on health plan investigations Health Benefits Security Project Pursues enforcement of ACA provisions and investigations of MEWAs

14 Retirement – Legislative Update MAP-21 (highway/student loan/flood insurance) signed into law on July 6 includes: Interest Stabilization Stabilized rates used for specified purposes PBGC Premium Increases Section 420 extension & expansion

15 Retirement – Regulatory Update, Department of Labor Participant Disclosure FAQs issued May 7 th –Q&A #30 on brokerage windows –May 31 st meeting with DOL representatives on Q&A 30 –July 3 rd OMB meeting –Letter to Secretary Solis –Hill visits

16 Retirement – Regulatory Update, cont Department of Labor Beneficiary statements & lifetime income (mandate vs safe harbor) Definition of Fiduciary proposed regulation Department of Labor brief on Forum selection clause (Monzingo v. Trend Personnel Services) Court of Appeals, 10 th Circuit

17 Retirement – Regulatory Update, cont. Treasury Department/IRS 25 year stabilization rate

18 Upcoming ERIC calls and meetings Washington Update conference call: Monday, September 9, 11:00 a.m. Washington Representatives Committee meeting: Monday, September 9, 3:30 p.m. ERIC Membership and Committee meetings: October 24-25, 2012

19 19 To receive ERIC updates If you would like to receive your own copy of our s and notifications of future updates, please let us know by writing to Adreanne Cooper at ERIC In this , please include your contact information or signature block, and please indicate whether you wish to receive information on retirement issues, health issues, or

20 20 For further information Kathryn Ricard, Senior Vice President, Retirement Security Gretchen Young, Senior Vice President, Health Policy ERIC: 202/


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