2016 Legislative Success and
Challenges for 2017
CAHU’s legislative
efforts are a key to our success as an association, but it is hard to measure
successful efforts. Much of what we do,
such as our contacts with legislators, or to review bills that we either
support or oppose and communicating those positions or suggestions for
alternate approaches to key decision makers, is not always visible to
members. Sometimes these conversations
lead to direct action and sometimes it does not. But over time, CAHU continuing contacts with
legislators and regulators slowly but surely successfully shape actions on
issues affecting agents and healthcare insurance.
There are
areas that we can measure, and I am really happy to tell you that our
legislative team scored some significant successes this past legislative year.
Led by
Legislative Vice President David Fear, Jr, our Legislative Council and CAHU’s
legislative advocates worked very hard
early in the year, combing through over 1,500 California legislative bills to
identify those that impacted our members or the products they offer to
clients. This produced a working list of
top priority bills that guided our legislative efforts. Advised by Michael Belote and Julianne
Broyles of California Advocates, our legislative team focused on this bill list
during the legislative sessions. Over
the course of 2016, CAHU Legislative Council members and legislative advocates
gave testimony on these key bills. CAHU
efforts produced an outstanding score card of success in supporting or opposing
bills that impacted our members and consumers.
In addition,
under the leadership of Chairman Patrick Burns, our Political Action Committee (PAC)
was successful in raising significant contributions, and our donations
supported a very high percentage of winning candidates.
Here are
some 2016 highlights you should know:
PAC contributions to elected candidates: CAHU PAC made thoughtful contributions to
candidates and backed winning candidates in 91% of the races where we made a
contribution.
2016 Legislation CAHU supported or opposed: Only one bill that we opposed was signed by
Governor Brown while the majority of bills we supported or worked out changes
to get to a neutral position were signed by the Governor. I am also happy to report a majority of the
bills that CAHU opposed were defeated. Governor
Brown signed CAHU supported bills, including AB 72, which protects consumers
from balance billing by out of network providers when the treatment was in an
in-network facility; AB 1163, which requires carriers to give a more fair
notice of changes to agent agreements; and SB 137, which requires carriers to
update provider directories more often.
Past
President Michael Lujan made some vital contributions in our discussions with
regulatory agencies which advocated for changes that affected individual
commissions. These included the
following policy changes for Qualified Health Plans participating in Covered California
and off the exchange, which will take effect January, 2017:
- Carriers must pay a commission. Zero commissions are not acceptable.
- Carriers must pay the same for Special Enrollment Period changes and standard enrollment.
- Carriers must pay the same for metal tiers or plan type.
- Carriers must recognize Agent of Record Changes.
- Carriers must notify the Agent of Record of premium delinquencies.
CAHU also
has begun a process to determine if charging a fee in the individual market
would be a viable legal solution to compensation issues. Along with IIABCal and NAIFA California, we
have asked an attorney to investigate legal issues surrounding the ability of
agents to charge a fee and to report back to us in a few weeks. The report will guide us as to the next
steps. CAHU leadership will keep you informed on progress regarding this
important action.
January 2017
means the new California legislative session has begun, and Congress has now
convened and the new President will be sworn in soon.
The issue of
repeal and replace is in full swing and seems to change from day to day. What
we do know is change will happen early in the new Presidency. CAHU will work
with legislators and NAHU to help create a sustainable insurance marketplace
that controls cost but also allows citizens to be protected and retain coverage. In addition, agents nationally are asking for
a full repeal of the Medical Loss Ratio requirements, which will provide relief
to health insurance carriers struggling to meet the current restrictions. This
will result in lowering premium costs and encouraging carriers to remain in the
health insurance market. Since health insurance plans have already been
approved for 2017, an effective date of January 1, 2018 has been suggested.
Relative to
the Individual Mandate penalty and Employer Mandate penalty, action is being
contemplated, but Congress is trying to be careful in how this is crafted to ensure
that there is a marketplace for agents to sell in after any federal or state
action occur.
CAHU will
work with all stakeholders in 2017 to meet CAHU’s constant goal of making sure
that Californian’s are able to use licensed agents to aid them in finding and
keeping affordable health care insurance that fits their needs and their
budgets.
This will be
a very active legislative year at both the state and federal level. CAHU and NAHU will be heavily involved at
national, state and local levels. I am
asking you to participate however you can.
Join your local legislative committee and lend your voice to discussions
about Congressional and California legislative activity. Adopt a legislator to educate them about the
issues and CAHU’s positions. Developing and
maintaining a close contact with a legislator is one of the most effective ways
to be an active participant in the political process. Come to Cap Conference in mid-February to
listen to and discuss the latest information about changes in the ACA. Educate yourself so you can educate others.
Thank you
for your membership.
Questions/Comments: info@cahu.org
Questions/Comments: info@cahu.org