House, Senate pass budget bill that includes key insurance provisions
Insurance advocacy groups PIA, NAMIC and the Big 'I' applauded the passage of 3 key policy provisions in H.R. 1865.
On Thursday, the Senate followed the House in passing the $1.4 trillion federal government funding package H.R. 1865, which includes three top policy priorities among insurance industry groups.
Among those provisions, the spending package includes an extension of the National Flood Insurance Program (NFIP) through September 30, 2020; an extension of the Terrorism Risk Insurance Program (TRIP) and Terrorism Risk Insurance Act (TRIA) through the end of 2027; and the permanent repeal of the healthcare “Cadillac Tax,” which would have imposed a 40% tax on health benefits that exceed an established annual cost.
The Senate passed the bill 71-23, following the House’s vote earlier this week passing the bill 297-120.
The National Association of Professional Insurance Agents (PIA National), the Independent Insurance Agents & Brokers of America (the Big ‘I’) and the National Association of Mutual Insurance Companies (NAMIC) commended both the House and Senate for passing the $1.4 trillion budget bill along with the three key policy provisions advocated for by these groups, extending programs for flood insurance and terrorism insurance, and repealing a 40% healthcare excise tax.
Industry reactions on NFIP extensions, Cadillac Tax repeal
Jon Gentile, vice president of government relations for PIA National said in a statement that the 9-month extension of the NFIP included in the bill ensures a lapse in the program will be avoided, while also giving Congress time to work towards a long-term reauthorization. On TRIA, Gentile added, “By including the reauthorization of the TRIP, Congress has promoted market stability and protection from economic chaos in the unfortunate event of a terrorist attack.”
Commenting on the third insurance policy provision included in H.R. 1865, Gentile’s statement called the Cadillac Tax “a disastrous threat to the employer-sponsored health market,” and “a devastating tax that would jeopardize the healthcare of over 150 million Americans,” and celebrated its repeal.
“The Big ‘I’ would like to thank the U.S. Senate for closing out the year with great news for independent agents,” Bob Rusbuldt, Big ‘I’ president & CEO, said in a statement. “We are grateful that the passage of government funding legislation included…three of our major priorities. We now urge President Trump to quickly sign this package into law.”
Insurers applaud 7-year TRIA extension
NAMIC released a statement by senior VP of government affairs Jimi Grande applauding the TRIA (TRIP) reauthorization.
“By voting today to extend TRIP, the Senate has helped protect our economy from the threat of terrorism and to keep our communities growing,” Grande said. “The program helped revive our economy in the wake of the 9/11 attacks, bringing back thousands of jobs lost as development halted due to a lack of affordable terrorism coverage.”
“Since then it has provided the financial security for development in cities and towns from coast to coast, and thanks to overwhelming support from congressional leadership and lawmakers from both sides of the aisle, it will continue to do so.”
The American Property Casualty Insurance Association (APCIA) also applauded Congress’s passage of the 2020 fiscal spending bill and its 7-year TRIA reauthorization.
“APCIA commends the overwhelming bipartisanship expressed in the House and Senate to get TRIA done this year This is a great example of how Congress got their job done, on time, with the interest of the American people at the forefront,” Nat Wienecke, senior VP of federal government relations at APCIA, said in a statement.
“Because TRIA is critical to the stability of the nation’s economy, businesses of all sizes, and the insurance markets, Congress enacted the Program well before it was set to expire. This is a job well-done.”
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