GAMA International Journal Jul-Aug 2013 - 13

Wash ington Watch

What’s Hot
Why It Matters
With tax reform looming, the industry must fight to maintain the current favorable tax
policy on life and health products. Plus, regarding the Affordable Care Act (ACA)
rollout, will consumers get all the information they need?
House Bill Addresses Debt-Limit Issue
On May 9, the House of Representatives approved H.R. 807 a largely political
,
measure aimed at avoiding at least some default if the Treasury Department hits the
debt limit later this year. The 221 to 207 vote (all Democrats, along with eight
Republicans, voted no) on the “Full Faith and Credit Act” would authorize borrowing
beyond the debt limit amount only to make payments on existing debt and Social
Security obligations. The bill has little chance of even coming up in the Senate, though.
Economists inside and outside of the government are now projecting that the United
States will hit the debt ceiling in October — which is also the start of fiscal year 2014
and when new spending authority is needed for the entire federal government. This is
setting up a “perfect storm” for lawmakers and could be reminiscent of the fiscal cliff
debacle that occurred at the end of 2012. Many are eyeing tax reform as the key to a
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compromise on both funding the government and resolving the debt-ceiling issue.
congress and Federal Agencies Focus on Health Reform Law
Both Congress and the Health and Human Services, Labor, and Treasury departments
continue to focus on implementing of the Affordable Care Act (ACA). Some
developments:
■

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are not to be construed as legal
advice. Washington Watch is
intended for the information of its
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or as an expression of GAMA
International policy or positions.

The House Republicans announced another vote (the 38th this year) to repeal
the ACA. The vote is expected to be purely along party lines, and as in the
previous 37 attempts, the initiative is expected to stall in the Senate.

■

House GOP members are also discussing legislation to delay the ACA’s 2014
effective dates. The bill would focus on Oct. 1, 2013, the date by which state,
federal, and state-based partnership exchanges must be open for eligible
individuals and small businesses to buy coverage that will become effective on
Jan. 1, 2014. The Jan. 1 effective date for exchange-based coverage, the
employer responsibility rules, and the individual mandate are also candidates
for inclusion in delay-focused legislation.

■

Senate bill S. 701 would redefine “part-time” as work for 40 (rather than 30)
hours per week, for purposes of the ACA’s employer responsibility rules.

■

On May 8, the Labor Department released guidelines on the notices that
employers must give to their workers about the availability of exchange-based
insurance. Information must be provided to all full- and part-time employees,
whether or not they are enrolled in the employer’s plan, at no cost to them.
Notices must describe the services provided by the exchanges, contact
information, information on eligibility for a premium subsidy, and notice that a
decision to buy insurance through the exchange means that the employee may
lose any employer contributions to the cost of coverage (including tax benefits).
©

2013 naiFa
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GAMA International Journal Jul-Aug 2013

Table of Contents for the Digital Edition of GAMA International Journal Jul-Aug 2013