Date: March 17, 2010
Subject: Staying Alive in Health Reform

TAKE ACTION NOW

Reason Action Is Urgently Needed: The leadership of the House of Representatives is planning to release a package of changes to the Senate-passed health reform bill in hopes of passing health reform by the end of March. A manager's amendment to the package of changes may also be put together which will allow modifications to be made to the health care proposal prior to the House vote. This gives NAIFA members a last chance in the House to weigh in on key concerns.

NAIFA members have a number of concerns with the version of health reform currently under consideration. Whether you want to defeat the current legislation outright or work to have it "done right," the reality is that no one can predict the fate of the current effort. Accordingly, improvements to reduce costs and administrative burdens -- should the legislation become law -- are still warranted.

Contact your Representative to weigh in on critical issues. Specifically note that the following improvements are needed:

• Remove the new 3.8 percent tax on unearned income (including annuities and possibly income recognized from the surrender or sale of a life insurance policy) - the price of health reform should not come at the expense of responsible consumers who plan for their retirement needs.

• Include stronger individual mandate enforcement - a meaningful mechanism is needed to discourage healthy individuals from waiting until they are ill or injured to purchase coverage.

• Drop the federal Health Insurance Rate Authority -a new federal authority would create redundant and burdensome regulation.

• Eliminate the CLASS program from the bill - Helping people plan for their long-term care needs and allowing them to purchase quality insurance products at their place of employment should be part of our nation's answer to the long-term care financing challenge. However, there are better ways to achieve these goals than creating a new federal entitlement program.   

• Clarify the availability of High-Deductible Health Plans and Health Savings Accounts (HSAs) in the Exchange - these plans offer affordable options and should be readily available both inside and outside the exchange.

• Increase contribution limits to Flexible Spending Arrangements (FSAs) above the $2,500 level - limiting contributions will raise health costs for individuals with high unreimbursed health care expenses.

• Remove the "Free Choice" vouchers - employers that sponsor generous plans for their employees should not also be required to pay a penalty or provide a voucher to employees who opt out of their employer plan.

Urge your friends and colleagues to make their voices heard. Remember to complete the Tell-a-Friend feature after you email your lawmaker!

TAKE ACTION NOW

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