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Your Summary of Government Action Affecting Self-Insurance in Washington, D.C. and Elsewhere

By Jim Kinder
CEO, Self-Insurance Institute of America

Momentum builds against IRS regulation: Opposition continues to build on Capitol Hill to the change in tax treatment that the IRS has proposed for single-parent captives. We can’t name names yet, but we are told that more than one high-level member of Congress has asked the IRS to withdraw its proposal, and a SIIA lobbyist has been told that even if the IRS plunges ahead with its proposal, a legislative roadblock bill will be introduced.

NAIC lines up on the side of captives – SIIA government relations staff visited this week with the National Association of Insurance Commissioners and learned that organization is canvassing for opposition to the IRS reg among states that are captive insurance domiciles.

SIIA carries ERISA preservation message to Congress – SIIA staff, in concert with the National Coalition on Benefits, has met with staff of several highly placed members of the House, including minority leadership and the House HELP subcommittee where any changes in ERISA preemption would be hatched. Our feedback indicates strong support to maintain ERISA in its current form.

LRRA modernization bill will arrive early in 2008 – That’s the report from the Financial Services Committee where a bill to modernize the Liability Risk Retention Act to allow broader coverage for property and perhaps excess workers compensation is in the drafting stage. A completed first draft is hoped to surface early in January and be in play by mid-February.

White House repeats its resolve to veto expanded TRIA bill – For those in Congress who may not have been paying attention, the Bush administration this week reiterated its threat to veto extension of the federal government’s terrorism insurance backstop if the final bill includes elements of the House version such as expansion to group life and specific property/casualty coverages. The White House said it supports the Senate version that would basically extend the existing backstop for seven years beyond its expiration on Dec. 31.

Crowded health care agenda for final days of 2007 – Congress is racing to resolve many of the most contentious issues of 2007 including measures to increase funding for community health centers, reauthorize health scholarships and student loan repayment programs, establish school-based clinics and examine a federal ban on electronic prescriptions for controlled substances.

Health care equal to Iraq among Iowa Dems – A poll of Iowa Democrats leading up to that state’s Jan. 2 caucus on presidential candidates found that health care and the war in Iraq were essentially tied as the most important voter issues. After all the months of candidate wrangling and haranguing, the 2008 primary season will be open for business two weeks from next Wednesday!

What’s on your company’s holiday gift list? Does your company want protection of ERISA preemption? How about expanded opportunities among additional RRG coverages? Defense against unfair taxation? Heading off state stop-loss assessments? Those are all available in a full range of sizes and gift-wrapped for those companies that find support in numbers by joining SIIA. To learn more, click here.