The U.S. House of Representatives narrowly passed a revised version of the American Health Care Act (AHCA).
So, what changes were made to allow President Donald Trump to get enough votes to pass this time? With the previous version, major hold-outs were members of the conservative House Freedom Caucus who said the proposed bill retained too many elements of the Affordable Care Act (ACA). The Freedom Caucus was especially concerned with provisions regarding essential health benefits.
James Gelfand, SVP of Health Policy, at the ERISA Industry Committee (ERIC), based in Washington, D.C. says the new bill shored up conservative support by allowing states to impose work requirements in Medicaid, and giving states the option to apply for a waiver to suspend certain ACA insurance rules. Steve Wojcik, vice president, public policy at the National Business Group on Health (NBGH), who is based in Washington, D.C., says an amendment allows states to have flexibility in defining essential health benefits, especially for individual and small group markets. And, according to news reports, states would also have flexibility in making rules for pre-existing health condition coverage.
Gelfand adds that it shored up moderate support by creating a $15 billion invisible high risk pool to help people with high premiums, and an $8 billion fund to help people adversely affected by suspension of community rating rules in their state.
However, research from Willis Towers Watson suggests that employers expect to retain some of the ACA’s popular provisions, “even if they are not required to by a new law.” Julie Stone, a national health care practice leader at Willis Towers Watson, said in a press release, “Employers are more likely to retain some of the popular ACA benefit provisions because of their positive impact on employee engagement and the potential for changes to be viewed negatively in the context of overall rewards.”
NEXT: Positive impact on employers
In a statement, ERIC said the House passage of the AHCA is a positive step forward. ERIC notes the AHCA would help to eliminate many burdens on employers by:
Repealing the employer mandate;
Repealing numerous taxes that raise the costs of health insurance and health care, such as the taxes on pharmaceuticals, over-the-counter medicines, and limitations on flexible spending accounts; and
Further delaying the Cadillac tax.
Wojcik says to the extent individual and employer mandates go away, a lot of reporting that hinges on that will go away. But, he notes it will require additional regulations to undo reporting.
Wojcik adds that ERIC is not expecting and has not heard anything from its members on the issues of state flexibility for essential benefits and pre-existing condition. “They are more interested in the excise tax [on high-cost health plans] being delayed to 2026,” he says.
“The Cadillac tax is really the threat to robust health plans. If it stays in place, it will put pressure on employers to scale back benefits,” Wojcik notes. “It would be a win-win for employers and employees for this to be delayed and ultimately repealed.” ERIC is working with lawmakers to get the tax repealed.
He says it is hard to speculate whether the bill will pass in the Senate, “but from what we’re hearing, the Senate is going to be very deliberate and likely make big changes to it. A vote may take a while." Employee groups and certain non-profits advocacy groups have expressed concerns that many will lose coverage under the new law. And, New York Attorney General A.G. Schneiderman has vowed to challenge the law in court if it passes and is signed by the president.
“We’ve been telling our members that for now nothing changes, and the ACA is the law of land. They have to keep complying,” Wojcik says.
CAPTRUST Financial
Advisors announced that the InTrust
Fiduciary Group, which specializes in institutional retirement consulting,
has joined the CAPTRUST family.
InTrust offers fiduciary guidance in various aspects of retirement
plan management. It specializes in recordkeeping provider analyses, plan design
and benchmarking, and investment policy.
“Regulatory mandates are evolving within our industry,
but InTrust’s fiduciary duty never wavers,” says company President
Michael Maresh. “Joining CAPTRUST, a firm that shares the same core
beliefs and values, provides us with the resources necessary to strengthen and
broaden the services we provide for our clients, while continuing our
commitment to serve as their advocate and trusted planning partner. We are
extremely excited for this partnership.”
The move marks CAPTRUST’s entry into Austin, Texas,
following its move into Dallas and Houston.
CAPTRUST offers advisory teams numerous resources designed
to accelerate growth and add value to the client experience. It now has 120
advisers across 35 locations and advises on approximately $229 billion in
client assets.
NEXT: Nuveen Expands DCIO Business
Nuveen Expands DCIO
Business
Asset management firm Nuveen is growing its Defined
Contribution Investment Only (DCIO) business with the addition of several
executives.
Kate Jonas will
serve as leader of the Consultant Relations team. She will support the
firm’s efforts in the defined contribution (DC) and defined benefit (DB) plan
markets. She joins from BlackRock’s Global Client Group, where she led DC
consultant relations for the institutional DC team covering the United States
and Canada.
Christine Stokes joins as head of Retirement Practice
Management responsible for supporting
the distribution growth strategy. She has worked at Voya Investment Management
where she was a senior product manager focusing on multi-asset solutions for
the institutional, intermediary and affiliate businesses.
Daniel Noschese who joined the DCIO Sales team will work with retirement specialists in the
Midwest. Formerly with Putnam Investments, Noschese served as a Defined
Contribution Investment Specialist where he was responsible for external DCIO
sales for the Midwest region.
Matthew Kasa also joined the DCIO Sales team. She is responsible for DCIO sales and retirement
adviser development in the Southwest. Most recently, Kasa was a vice president
for DCIO sales in the southwestern United States with American Century
Investments.
Ashish Gandhi will join in mid-May with
responsibility for DCIO Institutional
Sales. He will execute Nuveen’s new business development efforts directed
at large institutional clients representing Nuveen’s full suite of capabilities
including its target -date offerings to DC plan sponsors. Gandhi was previously
a director within LMCG Investments’ institutional business.
Nuveen’s DCIO team works in consultation with plan sponsors,
consultants and retirement plan advisers to evaluate the investment menus of
retirement plans and identify ways to improve outcomes for plan participants.
NEXT: Segal Group
Names Chief Actuary
Segal Group Names Chief Actuary
Eli Greenblumhas been named The
Segal Group’s Chief Actuary.
Greenblum brings more than 30
years of managerial and actuarial consulting experience to his new role. He is
a member of several actuary organizations including the Society of Actuaries
and member of the American Academy of Actuaries. He recently served as vice
president for the American Academy of Actuaries.
“The Chief Actuary has overall responsibility for The Segal Group’s actuarial
services, including overseeing quality and establishing policies,” says President and CEO David Blumenstein. “Eli has a wealth of actuarial experience advising
multiemployer, public-sector and single-employer plans.”
NEXT: Neuberger Berman Names Head of ESG
Investing
Neuberger Berman
Names Head of ESG Investing
Independent, employee-owned investment manager Neuberger Berman has named Jonathan Bailey as head of Environmental, Social and Governance (ESG) investing.
Bailey will work with the firm's investment teams and
research departments to further incorporate ESG principles into the equities,
fixed income and alternatives platforms. He also will help portfolio managers
consider ESG as part of their analytical approach to evaluating companies and
markets. In addition, he will chair the firm's ESG Investment Advisory
Committee.
Bailey joins Neuberger Berman from Focusing Capital on the
Long Term, a think tank. Beforehand, he served as associate partner at McKinsey
& Company where he advised pension plans, asset managers, and other finance
institutions on a range of issues related to investment strategy,
organizational structure and ESG integration. He’s also worked on
sustainability and governance investment projects for both former Vice President
Al Gore and former British Prime Minister Tony Blair.
The firm notes that integration of ESG factors into
investment analysis and portfolio construction can be valuable in identifying
companies whose sustainable business models and risk management cultures may
afford attractive long-term investment opportunities.
NEXT: Putnam Hires Head of Sustainable
Investments
Putnam Hires Head
of Sustainable Investments
Katherine Collins has joined Putnam Investments as head of Sustainable Investing. She will
be tasked with overseeing the firm’s environmental, social and governance (ESG)
investment business, which is expected to include managing strategies for
institutional and retail mutual fund clients. She also will responsible for
driving overall thought leadership on the topic.
Previously, Collins was CEO of Honeybee Capital, a
research firm focused on ESG investment issues. Earlier, she worked for
Fidelity Management and Research Company from 1990 to 2008. Her roles included
portfolio manager for the Fidelity America Funds, where she launched a pilot
investment fund with a sustainable and socially responsible mandate. She was
also a director of Equity Research and portfolio manager for the Fidelity
MidCap Funds.
“Investing through the lens of environmental, social, and
governance is redefining what asset management can accomplish,” says Robert L. Reynolds, Putnam’s president and
chief executive officer. It is a
concept that is becoming increasingly synonymous with good long-term investing
and is serving to help identify opportunities. Katherine’s proven leadership
and expertise will ensure we continue to move to the forefront of this rapidly
growing field.”
She earned a master’s degree in Theological
Studies from
Harvard Divinity School and a bachelor’s degree with honors in economics
and Japanese Studies from Wellesley College. She also holds the
Chartered Financial
Analyst designation.
NEXT: PSCA Names Executive Director
PSCA Names Executive
Director
John M. (Jack)
Towarnicky has joined the Plan
Sponsor Council of America as the organization’s executive director.
Before joining the PSCA, Towarnicky was a visiting assistant
professor of management at Duquesne University. Prior to teaching, he
served in a benefits compliance role at Willis Towers Watson. He’s also led the
corporate benefits function at Nationwide Mutual Insurance Company. Moreover,
he’s served in benefits leadership roles at several companies including Oil
E&P, Cooper Industries, and Marathon Oil. He has also served on
boards of several benefits trade associations including the American Benefits
Council, World at Work, the Corporate Board of the International Foundation of
Employee Benefit Plans, and the Council on Employee Benefits.
“Jack brings both experience at employee benefits trade
associations and with plan sponsors,” says Stephen
McCaffrey, PSCA Board Chairman. “After an extensive search, we are pleased
to find a leader with deep experience who can continue the growth and success
of our organization.”
NEXT: Former BlackRock Exec
Launches Retirement Readiness Firm
Former BlackRock Exec
Launches Retirement Readiness Firm
Laraine McKinnon,
former managing director at BlackRock is departing her roll and taking lead at
her new firm named LMC17. She
announced the company is determined to bring an independent perspective and
heightened focus on building effective retirement readiness programs. It will
serve several players in the industry including asset managers, advisers,
recordkeepers, and select plan sponsors.
Based in Silicon Valley, LMC17 will also focus on diversity
and inclusion programs designed to help local technology firms onboard, retain
and promote diverse talent.
"It's a critical time for financial services firms to
re-frame their value proposition and understand how to deliver best practice
401(k) services to large and small American companies,” says McKinnon “There's
increased pressure – from the regulatory environment to shifting demographics
to a very competitive FinTech marketplace – and companies need to figure out
how they're going to deliver retirement to millions of participants. LMC17
builds custom strategic sales programs that capitalize on a provider's
strengths."
McKinnon is a retirement readiness expert who has served leadership
roles at BlackRock, Barclays Global Investors, and Wells Fargo Nikko Investment
Advisors. Her thought leadership includes optimizing 401(k) plan design,
sophisticated data analytics and apps, employee engagement through financial
wellness, workforce strategy, and removing behavioral roadblocks.
McKinnon also builds diversity and inclusion programs to help
firms and individuals. She is the founder of a women's leadership
incubator in Silicon Valley and sits on the Board of The CLUB Silicon Valley.
She earned a bachelor’s degree, cum laude, in political science and women's
studies from Wellesley College.
