Academy Activities

On Jan. 14, the Health Practice Council released a comment letter (news release) to House and Senate leadership on the differences between the Patient Protection and Affordable Care Act and the Affordable Health Care for America Act (H.R. 3962). The council developed the letter to provide input to policymakers during the reconciliation process. The letter discusses the implications of these differences and, where appropriate, offers recommendations on which chamber's approach (if either) would be more viable.

Also on Jan. 14, a joint work group of the Academy and the Society of Actuaries (SOA) released a new technical report (news release) on the potential implications of an excise tax on high-cost employer health plans (often called "Cadillac Plans"). The Senate-approved health care reform bill included the 40 percent excise tax on coverage in excess of specified dollar thresholds. The thresholds would be higher for some individuals based on age, occupation, and geographic area. According to the Academy/SOA report, an excise tax based on plan benefits rather than the proposed premium dollar threshold would more accurately target overly generous plans.

In the News

An actuarial analysis of the Community Living Assistance Services and Supports (CLASS) Act produced by a joint Academy /Society of Actuaries work group has caught the attention of policy experts and the national media, alike. The analysis of the CLASS Act, which is a health care reform provision establishing a federal long-term care program, was discussed Dec. 15 during National Public Radio's "Diane Rehm Show."

Steve Schoonveld, a member of the joint work group, has been actively discussing the CLASS Act provision on behalf of the Academy and the work group. Schoonveld told Time magazine (Dec. 8) that changes to the provision are in the right direction but that there is still plenty of room for improvement. In a Dec. 29 report filed by the Tribune/McClatchy Washington Bureau, Schoonveld warned that adverse selection issues with the CLASS Act will cause premiums to be exceptionally high. The article ran in, among others, the Los Angeles Times (Dec. 31), the Chicago Tribune (Dec. 31) and the St. Louis Post-Dispatch (Jan. 3).

News links are to external websites. The Academy is not responsible for the content of these websites.

Legislative
Updates

Democratic leadership from the House and Senate are in reconciliation negotiations over the final health reform package after having passed legislation on Nov. 7 (H.R. 3962) and on Dec. 24 (H.R. 3590).

On Monday, President Obama met with labor group representatives to discuss the Senate provision that would impose a 40 percent excise tax on high-cost employer-provided health plans. As of Thursday, a tentative deal was reported to have been made between the White House and union leaders on raising the plan cost threshold from $8,500 to $8,900 for individuals and $23,000 to $24,000 for families before plans are subject to the excise tax.

House and Senate leaders also met on Tuesday to discuss whether to support the House's proposed national insurance exchange or the Senate's proposed state-based exchange.