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| Legislative Update |
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NAHU CEO Janet Trautwein and senior government relations staff hosted a town hall webinar on January 10 and discussed important legislative and regulatory information. We understand that technical difficulties were experienced by some attendees, and apologize for any inconvenience this may have caused.
The audio recording synced to the PowerPoint presentation can be found here, and the PowerPoint can also be viewed here.
Be sure to mark your calendars for the upcoming town hall webinars! All webinars will be held at 1:00 p.m. EST.
2012 Town Hall Webinars
Wednesday, March 14
Wednesday, June 13
Wednesday, September 12
Wednesday, December 12
Wisconsin Simplifies Tax Law for Health Insurance Benefits for Adult Children |
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On November 4, 2011 Governor Scott Walker signed legislation that federalizes the Wisconsin income tax treatment of employer-provided health insurance benefits for non-dependent adult children. The law is retroactive for Wisconsin to January 1, 2011.
We thought this detailed press release from the Wisconsin Department of Revenue might be helpful to you when answering questions from clients. |
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Commissioner Ted Nickel Elected to NAIC Leadership Post |
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Beginning January of 2012, Wisconsin Commissioner Ted Nickel will serve as Secretary of the Midwest Zone of the National Association of Insurance Commissioners (NAIC). See the press release. |
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Wisconsin Officials Criticize PPACA Implementation Rules |
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The Wisconsin Office of Free Market Health Care has told the Obama Administration that their proposed PPACA implementation ruleshave serious problems.
The regulations are described by Wisconsin Department of Health Services Secretary Dennis Smith as a "tangled web" with provisions that will create "a crater in future state budgets".
Wisconsin Insurance Commissioner Ted Nickel stated,"We want to protect competition, retain the role of insurance agents and brokers and give people the tools they need to choose the coverage that is best for them."
For more details, please click here. |
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Positive Meetings with Assembly Health Chair Rep. Jeff Stone |
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We have had several meetings with Assembly Health Committee Chair Rep. Jeff Stone. He has been in regular contact with various health care players and influential employer examples, and is pursuing pilot programs in Wisconsin that could lead to savings in health care costs similar to those already achieved by the Quad-Graphics and Serigraphs of our state, where the per employee per year cost runs at about $6,300 and $7,000 respectively for good quality health plans. He understands that market-driven solutions are much preferred to government-driven solutions.
Rep. Stone understands the cost implications of a company hiring or contracting with its own physician(s) but feels there must be some way to build a pilot program that could begin to effect such change for small and mid-sized employers. He has indicated that he would like to see several such pilots around the state if that were possible. He has indicated that if some regulatory change(s) was/were required that this could probably be accomplished. He was blunt about the fact that none could have a budgetary impact since that wouldn't get passed.
What thoughts might you have as to how this could be accomplished? Do you have contacts that could prove useful in this discussion? Do you have clients that might be helpful in this process? Let us hear from you. |
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State Budget Update
What impact is it having on your clients. |
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The past 10 months in Wisconsin have been incredible. We have experienced what is possible with a new Governor and legislature. They fixed the budget shortfall and balanced the biennium budget for 2011 and 2012.
Here is a video that puts the numbers and strategy in perspective that you should know and consider sharing with your clients.
This video is a great opportunity to know your clients better. You want to have them watch it and then set a time to listen to their comments. Budgets and health reform have much in common.
While some people do not agree with what was done to fix our State budget or how it was done, we need discussion about solutions for future legislation items, such as the out-of-control Medicaid spending and the Wisconsin Health Exchange. It is easy to criticize after laws are enacted, but more challenging to find the best legislation solutions.
When I ask my union friends how they would have addressed our $3.6 Billion State deficit, for some reason they always have the same answer to tax rich people and corporations. They have no answer for what happens when rich people, corporations and the jobs they provide leave our State.
What are our solutions for health reform? You want to listen for better ideas and then tell others. At our 2012 WAHU Strategy meeting last month, many ideas were talked about how our WAHU organization can be more effective in 2012 to meet member needs. Next month your WAHU State Board will finalize plans for 2012. There is still time to send your thoughts and how you would like to participate to bring those thoughts to action.
In the meantime, please get the word out to your clients and other licensed health insurance professionals about how we can advance better ideas to work together in 2012. |
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Wisconsin Seeks MLR Waiver! |
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Thursday October 27, 2011 |
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The Wisconsin Office of the Commissioner of Insurance has submitted the necessary waiver request, and supportive documentation, regarding the Medical Loss Ratio ("MLR") requirement of the PPACA. It was submitted to the federal Department of Health and Human Services earlier this week.
Rather than the 80% MLR requirement applying to Wisconsin's individual health insurance market, Wisconsin has sought to do a 3-year phase-in. It would be 71% for 2011, 74% for 2012 and 77% for 2013.
The basis for the adjustment sought by Wisconsin is that six insurers who have 35% of the individual market, and that cover 68,310 lives, had MLRs that fell below 80% in 2010. Factoring in net underwriting losses in the individual market, an MLR of 80% could destabilize the market and harm Wisconsin consumers.
Wisconsin OCI's waiver request also recognizes the value that agents provide to individuals. It says, "Agents provide an essential service that benefit the market as a whole. Not only are agents knowledgeable experts who help individuals select the best policy for their needs, but they are a continuing source of advice and guidance throughout the life of an enrollee's policy. Insurers, as well as agents, need a transition period to the 80% MLR standard in order to adjust their business models to the new standards in order to avoid market and service disruption to both individuals and the market as a whole."
To see a copy of Wisconsin's MLR transition plan request and supportive documentation, please click here.
It should be noted that some legislators and consumer groups have criticized OCI for seeking the wavier. Read the reactions:
WAHU considers this action on Wisconsin OCI's part to be appropriate. We believe a similar request should be submitted regarding the small group market if the supportive documentation is available. |
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Friday September 30, 2011 |
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The business tax credit for wellness programs |
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( AB 220 and SB 164). New wellness programs implemented by small businesses would be eligible for an income tax credit of 30%. We are hopeful that a bi-partisan approach will be signed into law before the end of this calendar year! |
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Fixing the Wisconsin income tax treatment of the age 26 health insurance coverage provision |
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(AB 277 and SB 203). Wisconsin law needs to be changed to avoid employees being taxed on the value of health insurance coverage of their adult children. In addition, a huge administrative burden on businesses is involved. Legislation is on a fast-track to pass soon to eliminate this tax liability. It would be retroactive to January of 2011. |
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Wisconsin Constitutional Amendment: No individual mandate |
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(SJR 21). A public hearing on SJR 21 is set for Tuesday October 11th. It would write into Wisconsin's Constitution two new rights of the people:
1. It would prohibit requiring any person to buy health insurance or to participate in a health plan. And
2. It would create a right of people to purchase private health care coverage.
WAHU strongly supports SJR 21. We urge you to contact your State Senator and State Representative and urge them to pass SJR 21 as soon as possible! (Note: a Constitutional Amendment must pass the legislature in two successive legislative sessions. It then goes to the voters to decide.) |
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Health Insurance Exchanges |
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Wisconsin continues to work on its version of health insurance exchanges. A free market approach is being taken. Several WAHU members are serving on advisory groups to OCI. |
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Medicaid Reforms in Wisconsin |
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The expansion of Medicaid programs under former Governor Doyle created an unsustainable approach to health care coverage. For example, over $100 million is spent on Medicaid costs in Wisconsin for people who had private-sector insurance coverage and who dropped that coverage. Laudable efforts are now underway by the Walker Administration to address this "crowding-out" of private-sector insurance coverage by the Medicaid program. It will be a contentious fight, however. |
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Changes at Wisconsin OCI |
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Eileen Mallow, Insurance Administrator, has left OCI after 16 years. She was impressive on insurance issues and was fair-minded. We wish her well.
J.P. Wieske has joined OCI as Legislative Liaison Director and Public Information Officer. He was formerly the Executive Director of an association of insurance carriers, the Council of Affordable Health Insurance. J.P. will handle OCI's interactions with the NAIC. |
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