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Examining the Department of Labor's Proposed Rule on Association Health Plans"

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Examining the Department of Labor's Proposed Rule on Association Health Plans EXPANDING AFFORDABLE HEALTH CARE OPTIONS: EXAMINING THE DEPARTMENT OF LABOR’S PROPOSED RULE ON ASSOCIATION HEALTH PLANS HEARING BEFORE THE SUBCOMMITTEE ON HEALTH, EMPLOYMENT, LABOR, AND PENSIONS COMMITTEE ON EDUCATION AND THE WORKFORCE U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS SECOND SESSION HEARING HELD IN WASHINGTON, DC, MARCH 20, 2018 Serial No. 115–40 Printed for the use of the Committee on Education and the Workforce ( Available via the World Wide Web: www.gpo.gov/fdsys/browse/committee.action?chamber=house&committee=education or Committee address: http://edworkforce.house.gov U.S. GOVERNMENT PUBLISHING OFFICE 28–982 PDF WASHINGTON : 2018 VerDate Mar 15 2010 15:12 Oct 03, 2018 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 C:\E&W JACKETS\28982.TXT CANDRA CEWDOCROOM with DISTILLER COMMITTEE ON EDUCATION AND THE WORKFORCE VIRGINIA FOXX, North Carolina, Chairwoman Joe Wilson, South Carolina Robert C. ‘‘Bobby’’ Scott, Virginia Duncan Hunter, California Ranking Member David P. Roe, Tennessee Susan A. Davis, California Glenn ‘‘GT’’ Thompson, Pennsylvania Rau´ l M. Grijalva, Arizona Tim Walberg, Michigan Joe Courtney, Connecticut Brett Guthrie, Kentucky Marcia L. Fudge, Ohio Todd Rokita, Indiana Jared Polis, Colorado Lou Barletta, Pennsylvania Gregorio Kilili Camacho Sablan, Luke Messer, Indiana Northern Mariana Islands Bradley Byrne, Alabama Frederica S. Wilson, Florida David Brat, Virginia Suzanne Bonamici, Oregon Glenn Grothman, Wisconsin Mark Takano, California Elise Stefanik, New York Alma S. Adams, North Carolina Rick W. Allen, Georgia Mark DeSaulnier, California Jason Lewis, Minnesota Donald Norcross, New Jersey Francis Rooney, Florida Lisa Blunt Rochester, Delaware Paul Mitchell, Michigan Raja Krishnamoorthi, Illinois Tom Garrett, Jr., Virginia Carol Shea-Porter, New Hampshire Lloyd K. Smucker, Pennsylvania Adriano Espaillat, New York A. Drew Ferguson, IV, Georgia Ron Estes, Kansas Karen Handel, Georgia Brandon Renz, Staff Director Denise Forte, Minority Staff Director SUBCOMMITTEE ON HEALTH, EMPLOYMENT, LABOR, AND PENSIONS TIM WALBERG, Michigan, Chairman Joe Wilson, South Carolina Gregorio Kilili Camacho Sablan, David P. Roe, Tennessee Northern Mariana Islands Todd Rokita, Indiana Ranking Member Lou Barletta, Pennsylvania Frederica S. Wilson, Florida Rick W. Allen, Georgia Donald Norcross, New Jersey Jason Lewis, Minnesota Lisa Blunt Rochester, Delaware Francis Rooney, Florida Carol Shea-Porter, New Hampshire Paul Mitchell, Michigan Adriano Espaillat, New York Lloyd K. Smucker, Pennsylvania Joe Courtney, Connecticut A. Drew Ferguson, IV, Georgia Marcia L. Fudge, Ohio Ron Estes, Kansas Suzanne Bonamici, Oregon (II) VerDate Mar 15 2010 15:12 Oct 03, 2018 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 C:\E&W JACKETS\28982.TXT CANDRA CEWDOCROOM with DISTILLER CONTENTS Page Hearing held on March 20, 2018 ............................................................................ 1 Statement of Members: Blunt Rochester, Hon. Lisa, a Representative in Congress from the State of Delaware .................................................................................................... 3 Prepared statement of ............................................................................... 5 Walberg, Hon. Tim, Chairman, Subcommittee on Health, Employment, Labor, and Pensions ..................................................................................... 1 Prepared statement of ............................................................................... 3 Statement of Witnesses: Arensmeyer, Mr. John, Founder and CEO, Small Business Majority ......... 42 Prepared statement of ............................................................................... 44 Condeluci, Mr. Christopher E., Principal and Sole Shareholder, CC Law & Policy, PLLC .............................................................................................. 48 Prepared statement of ............................................................................... 50 McGrew, Mr. Michael, CEO, McGrew Real Estate ........................................ 16 Prepared statement of ............................................................................... 18 Monson, Ms. Catherine, CEO, Fastsigns International, Inc. ........................ 7 Prepared statement of ............................................................................... 10 Additional Submissions: Ms. Blunt Rochester: Letter dated March 6, 2018, from National Association of Insurance Commissioners, and The Center for Insurance Policy and Research 95 Bonamici, Hon. Suzanne, a Representative in Congress from the State of Oregon: Letter dated March 6, 2018, from AARP ................................................. 99 Mr. Condeluci responses to questions submitted for the record 153 Espaillat, Hon. Adriano, a Representative in Congress from the State of New York: Letter dated March 6, 2018, from Attorneys General of New York, Massachusetts, California, Connecticut, Delaware, District of Co- lumbia, Hawaii, Illinois, Iowa, Maine, Maryland, New Jersey, New Mexico, Oregon, Pennsylvania, Vermont, Virginia ............................. 103 Chairman Walberg: Letter dated March 20, 2018, from the National Restaurant Associa- tion .......................................................................................................... 125 Letter dated March 23, 2018, from Members of Congress ..................... 128 Letter dated April 3, 2018, from the Multi-Association Health Plan Coalition ................................................................................................. 130 Letter dated March 20, 2018, from the National Association of Home Builders .................................................................................................. 136 Questions submitted for the record ......................................................... 151 Wilson, Hon. Frederica S., a Representative in Congress from the State of Florida: Letter dated March 6, 2018, from the American Cancer Society Can- cer Action Network ................................................................................ 142 (III) VerDate Mar 15 2010 15:12 Oct 03, 2018 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 C:\E&W JACKETS\28982.TXT CANDRA CEWDOCROOM with DISTILLER VerDate Mar 15 2010 15:12 Oct 03, 2018 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 C:\E&W JACKETS\28982.TXT CANDRA CEWDOCROOM with DISTILLER EXPANDING AFFORDABLE HEALTH CARE OPTIONS: EXAMINING THE DEPARTMENT OF LABOR’S PROPOSED RULE ON ASSOCIATION HEALTH PLANS Tuesday, March 20, 2018 House of Representatives Committee on Education and the Workforce, Subcommittee on Health, Employment, Labor, and Pensions Washington, D.C. The Subcommittee met, pursuant to call, at 10:03 a.m., in Room 2175, Rayburn House Office Building. Hon. Tim Walberg [chair- man of the Subcommittee] presiding. Present: Representatives Walberg, Wilson of South Carolina, Roe, Lewis, Mitchell, Smucker, Estes, Wilson of Florida, Norcross, Blunt Rochester, Espaillat, Courtney, and Bonamici. Also Present: Representatives Foxx and Scott. Staff Present: Courtney Butcher, Director of Member Services and Coalitions; Michael Comer, Deputy Press Secretary; Rob Green, Director of Workforce Policy; Nancy Locke, Chief Clerk; John Martin, Workforce Policy Counsel; Kelley McNabb, Commu- nications Director; James Mullen, Director of Information Tech- nology; Alexis Murray, Professional Staff Member; Krisann Pearce, General Counsel; Benjamin Ridder, Legislative Assistant; Molly McLaughlin Salmi, Deputy Director of Workforce Policy; Olivia Voslow, Legislative Assistant; Joseph Wheeler, Professional Staff Member; Michael Woeste, Deputy Press Secretary; Tylease Alli, Mi- nority Clerk/Intern and Fellow Coordinator; Mishawn Freeman, Minority Staff Assistant; Carolyn Hughes, Minority Director Health Policy/Senior Labor Policy Advisor; Richard Miller, Minority Labor Policy Director; Udochi Onwubiko, Minority Labor Policy Counsel; and Veronique Pluviose, Minority Staff Director; and Kim- berly Toots, Minority Labor Policy Fellow. Chairman WALBERG. A quorum being present, the Subcommittee on Health, Employment, Labor, and Pensions will come to order. Good morning, and welcome to today’s Subcommittee hearing. I’d like to thank our panel of witnesses and our members for joining today’s important discussion on the Department of Labor’s pro- posed rule on association health plans, or AHPs, and how we can make affordable health care options a reality for more working Americans. (1) VerDate Mar 15 2010 15:12 Oct 03, 2018 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 C:\E&W JACKETS\28982.TXT CANDRA CEWDOCROOM with DISTILLER 2 The timing of this particular hearing is appropriate, as this week marks eight years since the passage of the Affordable Care Act. Since ObamaCare became the law of the land, America’s small businesses have struggled to dig themselves out from under the law’s crushing weight. Since 2008, the share of small businesses with fewer than 10 em- ployees offering health coverage has dropped by a shocking 36 per- cent, leaving working Americans with fewer health care options or no coverage at all. It’s estimated that 300,000 small business jobs have been eliminated because of the Affordable Care Act, and 10,000 small businesses nationwide have been forced to close their doors. The financial burden this law has placed on Main Street businesses has been debilitating, with its costs and mandates amounting to an estimated $19 billion in lost wages
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