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Washington Update. AAHAM Pinetree Chapter October 3, 2013. How Government Really Works Throw out all preconceived notions you have about government and how it is “supposed” to work. In reality, it works nothing like what you learned in school or read about in books .

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Washington Update

AAHAM Pinetree Chapter

October 3, 2013


How Government Really Works

Throw out all preconceived notions you have about

government and how it is “supposed” to work.

In reality, it works nothing like what you learned in

school or read about in books.

I’m not so sure we know

how its supposed to

work anymore.

We have seen a breakdown that may

not be repairable


Welcome to Washington

“One doesn’t have to spend much time in DC to understand why the streets are designed in circles.”

–Ronald Reagan

“The Problem with political jokes is they have a habit of getting elected.”

-Henry Cate


1132 Days Until the

2016 Presidential Elections

397 Days Until the

2014 Congressional Elections


If you are a Republican

these were your choices in 2012


If you are a Republican

these may be your choices in 2016

Gov. Scott Walker

Scott Brown

Rep. Paul Ryan

Gov. Chris Christie

Sen. Marco Rubio

Jeb Bush

Sen. Rand Paul

Rick Santorum

Gov. Rick Perry

Sen. Ted Cruz

Gov. Susana Martinez

Rep. Peter King


If you are a Democrat

here is your choice in 2016


Can’t mention Hillary without

mentioning the possible First Husband


Others who want to run and still may even with Clinton running

Gov. John Hickenlooper

Gov. Martin O’Malley

VP ”Smokin” Joe Biden

Sen. Elizabeth Warren


Before we get to 2016 we need to get through 2013

President really has to be asking himself “Can I catch a break here!”

*Another game of chicken with shutting government down – Republican loser led by Sen. Ted Cruz (R-TX)

*Increased debt limit – harder to sell these days - Could

have significant impact on our economy

* Republican(s) efforts to defund ACA – R’s looking for 1-yr.

delay of ACA; Keystone pipeline; tax reform; elimination of

medical device tax

* President has to put off key pieces of ACA

* Syria

* 2014 Sequestration


What’s Congress been up to?

42 Votes to defund ACA

5 week summer vacation

Syria, Syria, Syria

Government Shutdown

Defund ACA (mishandled by all sides)


What’s Congress been up to?

Congress has passed 13 laws in 2013:

H.R.41: To temporarily increase the borrowing authority of the Federal Emergency Management Agency for carrying out the National Flood Insurance Program.H.R.152: Disaster Relief Appropriations Act, 2013H.R.325: No Budget, No Pay Act of 2013S.47: Violence Against Women Reauthorization Act of 2013H.R.307: Pandemic and All-Hazards Preparedness Reauthorization Act of 2013H.R.933: Consolidated and Further Continuing Appropriations Act, 2013S.716: A bill to modify the requirements under the STOCK Act regarding online access to certain financial disclosure statements and related forms.H.R.1246: District of Columbia Chief Financial Officer Vacancy ActH.R.1765:Reducing Flight Delays Act of 2013H.R.1071:To specify the size of the precious-metal blanks that will be used in the production of the National Baseball Hall of Fame commemorative coins.H.R.360: To award posthumously a Congressional Gold Medal to Addie Mae Collins, Denise McNair, Carole Robertson, and Cynthia Wesley to commemorate the lives they lost 50 years ago in the bombing of the Sixteenth Street Baptist Church, where these 4 little Black girls' ultimate sacrifice served as a catalyst for the Civil Rights Movement.H.R.258: Stolen Valor Act of 2013S.982: Freedom to Fish Act


Before we get to 2016 we need to get through 2013

Republicans have to asking what are we doing!” (Not all, but some)

*Party has not learned lessons from 2012

*Becoming more polarizing

*Republican leadership in tough spot

*Having the 2010 crop of Freshman not so energizing now for party’s future

* Becoming the Democrats of the 1990’s

* Like you today hate you tomorrow mentality (Sen. Marco Rubio)

* Gay marriage and race issues (Rep. Steve King comments)

* Fight to defund ACA – even most Republicans see as a losing issue

* Shutting government down

* Syria

* 2014 Sequestration


2014 elections critical to Republican’s future

51 Seats Needed For Majority

Democrats: 53Republicans: 45Independents: 2 (Really Democratic Seats – Sen. Angus King (ME) and Sen. Bernie Sanders (VT))2014:Democrats have to defend 20 seats Republicans have to defend 13


2014 elections critical to Republican’s future

House of Representatives: New Make-upDemocrats: 202Republicans: 233

SC re-elected former Congressman and Governor Mark Sanford – message: if you go through scandal run again and you can win. (Sanford, Vitter, Weiner, NY Gov. Elliot Spitzer, Bill Clinton)

How about Anthony Weiner in NY


ACA Will It Succeed?

Young people sign up as hoped (or WH banking on)

Exchanges work

Businesses don’t dump employer healthcare (already dumping spouses and retirees)

How many more pieces delayed – Small Business SHOP delayed another month

6 in 10 Americans Confused

Nurses just came out against

Unions want a carveout on Cadillac Plans


Do members of Congress

have to use the exchanges?


This has been a much debated topic and we finally have the answer:

Yes, but with a twist.

MOC and their staff have 75% of their monthly healthcare costs paid for.

ACA would have eliminated that benefit.

Earlier this summer MOC were complaining on the impacts such a move would have on their ability to earn a living.

President comes out and agrees to continue paying 75% monthly premium for MOC and their staffs.

MOC and staff are required to purchase insurance through the exchange.

Several Republican Senators pushing for tough vote in Senate requiring MOC and their staffs live under same standards as public.


Subsidies - Income Verification

Under the ACA some people will be eligible for government subsidies to help them purchase affordable healthcare through the government exchanges.

Starting in 2014 the government was supposed to begin verifying your income to determine whether you qualified for a government subsidiary.

President has announced that the government will not start verifying income until 2015. President is relying on the “honor system.”

Big push to sign people up for exchanges and using NFL, NHL, MLB to try and get people to sign up.

If you are urged to sign-up and do. Apply for subsidiary and in 2015 the government realizes you didn’t qualify, you will have to repay that subsidy.


Young People and the Exchanges

Oct 1, 2013 exchanges officially open – yahooo!!!!

We will see quickly if young people signup as the WH expects (and needs)

ACA is largely funded through young people buying into the exchanges and agreeing to pay higher rates (especially males)

Take the $95 fine in 2014 or pay around $1,000 for insurance

(people making $18,000 and up)

Fine $695 or 2% of salary in 2016

If you enroll in exchanges it will cost you $1,000 for people making $18,000 and up.

(may only make sense if you make $50,000 or more to buy into exchanges)


Part-Time Workers

ACA requires anyone with 50 or more employees to pay for healthcare

This is challenging to say the least for small business owners

This becomes a barrier for workers and continues downward trend of wages

(UPS cut benefits for spouses – will become the trend)

Hospitality industry will see probably biggest impact by this as restaurants like AppleBee’s and others cut hours

Counties and cities not immune – A LOT are moving to part-time employees to save money (Middletown, NJ reducing hours to 25 per week, which will save them $775,000 in ACA healthcare costs. Middletown spends $9 million of its $65 million on healthcare. Brevard County, FL cutting hours to save $1.38 million.)


States Prepared

States still scrambling to get exchanges operational by October 1, 2013 deadlines – 36 states not fully prepared or ready for full implementation

Several will be operational, but offering bare bones minimums right now as they need more time to be in a position to offer more

Some state like CA say they will see immediate savings to consumers, but several mid-western states like OH say costs have gone up by double digits

Some states (with Republican Governors) are doing nothing to help consumers sign-up for exchanges or provide information on their options – MO has barred local officials from doing anything to help promote the ACA.


Employer Mandate

July President announced he was putting off

employer mandate until 2015

Republicans pounce on President

Employer penalty will be $2,000 per full-time employee after first 30

Employers complained about reporting requirements – government looking at ways to simplify those requirements


Telephone Consumer Protection Act

AAHAM’s efforts have been productive on Capitol Hill since Legislative Day

AAHAM belongs to a broad coalition of groups headed by the US Chamber of Congress

No legislation yet to make the needed changes to the TCPA

Working through the FCC for possible relief

Budgetary issues and then Syria have caused the agenda to shift and put a lot of issues on the backburner

By no means does any of this mean AAHAM should stop its efforts


Paul A. Miller

(703) 383-1330 – office

(703) 930-7790 – cell phone

@mwcapitol – Twitter

@mwceo – Twitter