Donnelly Co-Sponsor of Chamber Policy Priority – Delaying Health Insurance Tax

Great news on a long-term policy priority for the Indiana Chamber! A bill has been introduced to delay the implementation of the Affordable Care Act’s Health Insurance Tax (HIT) until 2020 and to make the fees tax-deductible. As things currently stand, the tax would come into effect in early 2018 and bring with it increased health care costs.

Joe Donnelly

Senator Joe Donnelly is one of two co-sponsors of the measure from Sen. Heidi Heitkamp (D-ND).

The Indiana Chamber opposes HIT because of its impact on the small business community. HIT rests entirely on the insured marketplace, so that means businesses and their workers will feel the brunt. Higher premiums for consumers, including small and family-owned businesses – no thanks! And to make matters worse, the tax does not sunset but increases through 2024 and is adjusted for premium growth.

A recent report funded by UnitedHealth Group says that HIT would “increase 2018 health care costs by $158 per person on the individual market, and by $245 for Medicare Advantage participants.”

The HIT has been a bipartisan bone of contention for years, with a previous one-year delay in implementation already having passed Congress.

The Heitkamp-Donnelly bill, S. 1978, now will be reviewed by the Senate Finance Committee.

The Indiana Chamber will continue to voice its approval for this measure to our delegation members.

Senate Health Care Reform – Act III

A bipartisan agreement has been reached in the Senate to help stabilize health care markets – from Senate Health, Education, Labor and Pensions Committee Chairman Sen. Lamar Alexander (R-TN) and ranking member Sen. Patty Murray (D-WA).

Among other things, the Alexander-Murray agreement would:

  • fund cost-sharing reduction payments, which help lower consumers’ deductibles and co-pays, for two years;
  • broaden the pool eligible for a “copper plan” (catastrophic medical) coverage option, which would help reduce the mandate implications for essential benefits;
  • include funding to help Americans navigate signing up for health insurance, which had been cut by the Trump administration; and
  • set up high-risk pools that will allow for continued coverage for these individuals.

What this is not is a “repeal and replace”. That said, the two-year funding promise is good news for insurers and would help alleviate their unease, which would also be felt by consumers. But this bill does nothing to address the core problems in the individual marketplace that threaten its sustainability.

Indiana Sen. Joe Donnelly, who has been pushing for bipartisan fixes to the Affordable Care Act (ACA), has thrown his support behind the Alexander-Murray agreement and is a co-sponsor of the legislation. He stated, “This is the product of hard work from members on both sides of the aisle, and it’s an important step in providing much needed stability to the market. I’m proud to be part of the effort, and I will continue working with Republicans and Democrats to move this much-needed legislation forward.”

President Trump has alternately met the agreement with both optimism and skepticism. Overall, he’s indicated that he would favor a short-term subsidy fix; however, he doesn’t want to help insurers either.

It would appear the bipartisan legislation would garner most, if not all, Senate Democrat votes (as Minority Leader Chuck Schumer alluded to on Thursday), so that would leave a lot of wiggle room for passage if some, or even many, Republicans vote against it. The question is what Senate Majority Leader Mitch McConnell will do and what he says to his caucus.

Meanwhile, Sens. Bill Cassidy (R-LA) and Lindsey Graham (R-SC), the authors of the Senate’s second ACA reform attempt, have been working with Alexander and Murray on ways the bill can be made palatable to the very conservative arm of the congressional Republicans – most notably in the House.

In other words, this is far from a done deal.

Tax Reform the Talk of Fly-in

More than 100 of the state’s top business leaders descended on D.C. this week for the Indiana Chamber’s Fly-in event with our congressional delegation.

Attendees received meaningful and timely information from their representatives and senators through policy briefings, special dinner discussions and office visits.

Tax reform was the hot topic. How ironic that while we were D.C.-bound that President Donald Trump would be heading to Indianapolis to roll out his tax reform plan for the first time, and taking nearly half of the Indiana delegation with him on Air Force One for the announcement. But almost all Hoosier delegation members made it back in time to address their business constituents.

The tax reform message the Indiana Chamber contingent delivered to lawmakers in D.C. was that failure should not be an option – this needs to get done!

Senator Rob Portman of Ohio wraps up his remarks on tax reform – turning the floor over to Sen. Todd Young and Sen. Joe Donnelly for a Q&A session.

What caught our attention was how deeply committed everyone is to have tax reform cross the finish line. We felt that from our guest speaker, Sen. Rob Portman of Ohio, considered the Senate fiscal expert, to Indiana members in the House and Senate, including Democratic Sen. Joe Donnelly.

They know it’s important not only to them politically but they also realize that it’s much needed policy.

President Trump’s tax reform framework, which assuredly was done in tandem with congressional leaders, includes actions that the Indiana Chamber and business community at-large have been championing for some time:

• Lowering the corporate tax rate from 35% – the highest in the world today, which drives investment, jobs and even corporate headquarters overseas
• Lowering the top personal income tax rate – which now offers disincentives for initiative, investment and risk-taking while reducing the number of brackets
• Eliminating the alternative minimum tax (AMT), which is overly complex and ineffective, and the estate tax, which endangers many family farms and small businesses
• Adopting a territorial system in which income earned overseas is not taxed in the U.S.

In our Q&A with Sens. Donnelly and Todd Young, they were asked to handicap the likelihood – on a one to 10 scale – of a meaningful tax reform package making it through Congress. Donnelly gave it a fairly hopeful six, while Young said he’s more confident today than even a few months ago and now puts the chances for success at seven-plus.

Young added: “At a time when the rate of business creation is lower than at any period in my own life, I feel like the time is now for tax reform. And the President made a compelling case in what I thought were pretty accessible terms (for Americans).”

Donnelly summed up his thoughts on the matter: “My view on tax reform is simple: I want to try to get to ‘yes’. I think it’s much better if it’s bipartisan. … I think it’s a much better message to the country.”

At our legislative briefing, Congressman Larry Bucshon (IN-08) offered his assessment as well. “As long as both sides don’t go to our corners and stick with our traditional talking points – trying to win an election in 2018 – we are going to get this done.”

Tax reform, if done correctly, would broaden the base while lowering rates across the board – spurring new investment, job creation, economic growth and, ultimately, tax revenues, without increasing the federal deficit.

Our tax code should look like it was designed on purpose for strategic economic growth.
We are hopeful that’s what will happen in the coming months.

A big thank you to our D.C. Fly-in sponsors for making the event possible: Zimmer Biomet (dinner sponsor), Allegion (cocktail reception sponsor), Build Indiana Council (legislative briefing sponsor), AT&T, The Boeing Company, Duke Energy, The Kroger Co., Old National Bank and Wabash Valley Power.

We hope to see everyone who attended – and more – back next year!

Senators Discuss Tax Reform, Trip to Indy During D.C. Fly-in

While the irony of timing isn’t lost on anyone, the Indiana Chamber’s annual D.C. Fly-in delegation was in Washington D.C. yesterday while President Trump and several Indiana congressional representatives were in Indianapolis as the President revealed his tax reform plan.

It was an important moment for Indiana to be in the national spotlight as the much-anticipated tax reform plan was revealed. Read Indiana Chamber President Kevin Brinegar’s statement on the reform plan here.

And though some of Indiana’s federal lawmakers were in Indianapolis, both of Indiana’s senators were able to return in time to attend the D.C. Fly-in dinner and address over 100 Hoosier business leaders about their trip with the President.

Senators Joe Donnelly and Todd Young  discussed the potential for bipartisan agreement on tax reform (and a “sweet” treat Donnelly brought with him from Air Force One):

Additionally, one of the Senate’s leading tax experts, Sen. Rob Portman (R-Ohio), shared his perspective at the D.C. Fly-in dinner. Here are a few of his comments to the group, on the “positive list” of reforms included in the President’s tax plan:

We’ve been keeping you updated on social media (find us on Twitter at @IndianaChamber or follow #ICCinDC, and on Facebook at www.facebook.com/indianachamber/).

Thank you to all our event guests and sponsors for the 2017 D.C. Fly-in, including Build Indiana Council, Legislative Briefing sponsor; Allegion, cocktail reception sponsor; and Zimmer Biomet, dinner sponsor.

Donnelly, Walorski Working to Define Full-Time as 40 Hours Per Week

Since the passage of the Affordable Care Act (ACA), employers in Indiana and across the country have been forced to cut employees’ hours due to the law’s definition of a full-time employee as someone working an average of 30 hours per week.

The Indiana Chamber recognizes this as a significant issue for the Hoosier business community and has been pushing for a change back to the 40-hour work week. We are pleased to see that our delegation is leading efforts to make that happen.

Recently, Sen. Joe Donnelly reintroduced a bipartisan proposal that would change the definition of a full-time employee under the ACA to someone who works an average of 40 hours per week. Donnelly partnered with Sen. Susan Collins (R-ME) on this legislation.

Senator Joe Donnelly and Congresswoman Jackie Walorski greet Vice President Mike Pence as he arrives in South Bend to deliver the May commencement address at the University of Notre Dame (photo courtesy WSBT).

“I believe that we can work together to fix issues with the health care law and improve our health care system. I have heard from part-time workers across many industries, like school cafeteria managers to grocery store employees to adjunct professors at colleges, that have seen their hours cut to comply with the health care law,” Donnelly said.

“In Indiana, common sense holds that a full-time employee is someone who works an average of 40 hours a week, and the health care law should reflect that. I’m proud to partner with my friend and colleague Sen. Collins to reintroduce the Forty Hours is Full Time Act, and I am hopeful the Senate will consider this bipartisan bill soon.”

Meanwhile, a similar effort was introduced Thursday in the House led by Republican Congresswoman Jackie Walorksi (IN-02) and Congressman Dan Lipinski (D-IL).

The Save American Workers Act (H.R. 3798) also would restore the traditional 40-hour work week under the ACA.

“Obamacare’s burdensome employer mandate and its redefinition of full-time workers are hurting middle class American families and crushing our job creators,” Walorski said. “The Save American Workers Act will provide much-needed relief to hardworking Hoosiers who have faced reduced hours and fewer jobs. This bipartisan, commonsense bill will give businesses the certainty they need to create jobs, and it will give workers the opportunities they need to succeed.”

Background
The ACA currently requires employers with more than 50 full-time equivalent workers to offer health insurance to full-time employees (working 30 hours weekly) or face a penalty. This requirement has forced businesses to reduce hours and slow hiring in order to avoid unaffordable new costs or the ACA’s substantial fines. The 30-hour definition has affected workers in the private sector as well as city, state and school employees, with a particularly severe impact on hourly, part-time, and seasonal workers.

Sen. Donnelly: “Roads Aren’t Republican or Democrat”

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In a visit with the Indiana Chamber’s Congressional Affairs Policy Committee today, Sen. Joe Donnelly (D-Indiana) said he believes a new long-term highway infrastructure bill should be enacted yet this year.

Citing “desperate, crying” infrastructure needs, the senator said two imperatives are to “make sure we (Indiana) get our share” and “make sure we get it funded. We’re talking about  a six-year deal. I’ll take a five-year deal (if need be).”

Indiana is currently receiving 95 cents back on each tax dollar that it sends to Washington. In recent discussions, Donnelly voted no on a proposal that would have included Indiana’s share dropping to between 90 cents and 92 cents on the dollar. The goal, he says, is for no state to be funded at a lower percentage level than in the last long-term deal.

Transportation funding has been dependent on a series of short-term extensions that have not provided the resources needed for states to act with any certainty. Donnelly cited several instances of the damaging impact in Indiana, including the current closure of Interstate 65 near Lafayette due to bridge instability.

“Roads aren’t Republican or Democrat; they’re roads,” he explains. “There’s no way to do this without investment. I’m for seven different ways to fund this thing. Just pick one (or more). I just want to build roads.”

Donnelly also discussed potential changes to the Affordable Care Act (including his support for elimination of the medical device tax), the consequences of Washington legislating through Executive Orders, the debt limit, immigration, Iran, global environmental concerns and more.

Congress is scheduled to resume its work in Washington after Labor Day. Indiana Chamber members will be traveling to Washington on September 16-17 for the annual D.C. Fly-in. You can still register to participate.