Posts Tagged ‘congress’

NFIP Renewed Again

December 29th, 2011 by Iris | 1 Comment | Filed in flood insurance, world events

Under yet another short-term consolidated appropriations bill, H.R. 2055, which was passed by the U.S. House of Representatives and the U.S. Senate, and signed into law by President Obama on the last business day before Christmas, the National Flood Insurance Program has been renewed again – this time until May 31, 2012.

Had the bill not passed, or the President refused to sign it, the Program would have lost its authority to issue new flood insurance policies or renew existing policies, at midnight on December 23rd.

Representatives of the Big “I” – the Independent Insurance Agents and Brokers of America – are pleased with the reauthorization, but continue to push for program reforms, and a long-term authorization for the program.

Speaking on behalf of fellow agents and brokers, Charles E. Symington, Jr., the senior vice president for government affairs with the Big “I,” said, “It is important to note that our work on this important issue is far from over and the next few months provide ample opportunity for Congress to pass long-term extension and reform legislation that provides the necessary certainty for consumers.”

He also pointed out that traditionally, program extensions were granted in five-year periods in order to help keep the market stable, but that in recent years such extensions have usually been in 30-day to six-month terms.

Big “I” vice president for government affairs, John Prible, also spoke about the reauthorization, saying, “Today’s extension, although greatly appreciated, is just a temporary patch.”

Tags: , ,

House Advances Bill to Repeal Tax Reporting Provision in Healthcare Reform

February 23rd, 2011 by Iris | Comments Off | Filed in health care reform

Last Friday, the House Ways and Means Committee advanced a bill to repeal the tax reporting provision that was included in last year’s healthcare reform legislation. The Senate had already voted to repeal the 1099 provision requiring businesses to report on purchases of goods and services totaling more than $600.

President Obama said he supports the repeal.

Under current law, 1099′s must be filed for expenses paid to unincorporated entity, but the new requirement would require that expenses like phone and Internet services be filed starting next year.

According to Jimi Grande, senior vice president of federal and political affairs at NAMIC (the National Association of Mutual Insurance Companies), “This requirement provides no benefit to the businesses that have to file the paperwork or the taxpayers. Instead, it will be a massive drain on time and resources that would be better spent elsewhere.”

The bill was introduced by Rep. Dan Lungren (R – CA), and has 272 co-sponsors. It has since been sent to the House floor for debate and a vote.

Tags: , , , , , ,

COBRA Subsidy Extension Continues

January 25th, 2010 by admin | Comments Off | Filed in cobra insurance, health insurance

If you’re currently using the existence of COBRA health insurance law to maintain insurance coverage after you’ve been laid off or fired, you’ll be glad to know that Congress ended weeks of uncertainty in late December, giving final approval to President Obama to sign into law a Department of Defense bill that included provisions to extend COBRA premium subsidies.

According to an article at BusinessInsurance.com, the measure, H.R. 3326, extended a 65% premium subsidy, originally established via an economic stimulus measure passed early in 2009, by six to fifteen months for employees who were “involuntarily terminated” from their jobs between September 1, 2008 and December 31, 2009. In addition, any workers who lose their jobs before February 28, 2010 will also be eligible for a 15-month subsidy. Without the extension, employees terminated after December 31st, 2009 would not have been eligible.

The extension of the subsidy is expected to offer significant financial relief to employees who lose their jobs and group health insurance during the first two months of this year, as well as the many workers who have already collected the subsidy for the past nine months, and were no longer eligible or were about to lose their eligibility to receive it.

Representative Joe Sestak (D – Pennsylvania) said in a statement to the press, “Losing one job’s is difficult enough. But losing one’s health care along with it and worrying about being able to get treatment for oneself and one’s family, or fearing bankruptcy in the event of injury or illness is something Americans should not have to cope with in this difficult time.” Sestak had previously introduced a COBRA premium subsidy extension measure, part of which was included in the military spending bill passed in December.

This new COBRA subsidy extension may not be the last such extension, however, especially if unemployment numbers continue to remain high. While statistics on how many laid-off employees are taking the subsidy is not available, a congressional Joint Committee on Taxation report, generated after approval of the original subsidy, contained estimates that about 7 million workers and their families would benefit, at a total cost of $25 billion. Another survey found that COBRA enrollment rates surged after the creation of the subsidy, with opt-in rates nearly doubling as a result.

From September 1, 2008 – February 28, 2009, roughly 19% of involuntarily terminated employees were enrolled in COBRA. In contrast, from March 1, 2009 when the subsidy became available, through November 30, 2009, the original expiration date, enrollment rates were averaging about 39%.

The subsidy reduces insurance premiums from roughly $400 (for an individual) to $1200 (for a family) to $260 (for an individual) to $780 (for a family) – a significant savings for people who no longer have a regular source of income.

Tags: , ,