a letter sent yesterday, the Retail Industry Leaders Association
(RILA), along with 44 job creators and business representatives, endorsed
legislation to repeal a mandate that requires large employers to automatically
enroll employees into a health care plan if the employee fails to voluntarily
choose or decline coverage. The bill, the Auto Enroll Repeal Act, H. R
2206, is sponsored by Congressman Frank Guinta (R-NH).
“On the second
anniversary of the passage of this flawed law, its negative effect on employers
and employees is unmistakable,” said Christine Pollack, vice
president for government affairs. “The
auto enrollment mandate along with many other provisions in the law increase
uncertainty for employers and threaten the employer-sponsored health system.”
Included in the Patient Protection and Affordable Care Act (PPACA), the auto
enrollment mandate would result in an administrative nightmare for employers
and could subject employees to health care premiums for coverage they may not
want or need. Further, individuals may end up enrolled in a plan that does not
fit their specific health needs or is not accepted by their health providers.
Last month, the Departments of Labor, Health and Human Services, and Treasury
released a Frequently Asked Questions Notice (Notice 2012-17) acknowledging the concerns the Administration
received from employers about the complexities of implementing this provision
and stated that “the Department of Labor has concluded that its automatic
enrollment guidance will not be ready to take effect by 2014.”
“With the recent
acknowledgement from the Administration of the complexities involved with
implementation of the auto enrollment provision, now is the time to act on H.R.
2206 and fully repeal this provision,” said the 45
organizations who signed the letter.
RILA previously offered its support for the repeal legislation in a letter to Congressman Guinta sent last month.
A copy of the letter is available at http://www.rila.org/email/HR2206autoenrollGuintabusinesssignonletterMarch2012.pdf
The full letter text and list of organizations is below.
RILA, the trade association of the world’s largest and most innovative retail
companies, product manufacturers, and service suppliers, promotes consumer
choice and economic freedom through public policy and industry operational
excellence. Our members provide millions of jobs and operate more than
100,000 stores, manufacturing facilities and distribution centers domestically
and abroad. RILA members offer quality and affordable health care to
their employees and dependents, and are leaders in benefits design by
customizing plans to meet their workforces’ specific needs.
The Honorable Frank Guinta
U.S. House of Representatives
1223 Longworth House Office Building
Washington, D.C. 20515
behalf of the undersigned businesses, trade associations, and organizations
representing millions of American workers, their families, and hundreds of
thousands of job creators, we
write in support of the Auto Enroll Repeal Act (H.R. 2206).
1511 of the Patient Protection and Affordable Care Act (PPACA) amended the Fair
Labor Standards Act to require employers of 200 or more full-time employees to
automatically enroll employees in a health plan should coverage not be chosen
by an employee. On February 9, 2012, the Departments of Labor, Health and
Human Services, and Treasury released a Frequently Asked Questions Notice (Notice
2012-17) regarding several PPACA employer mandate issues. The Notice
acknowledged the concerns the Administration received from employers about the
complexities of implementing this provision and stated that “the Department of
Labor has concluded that its automatic enrollment guidance will not be ready to
take effect by 2014.”
the recent acknowledgement from the Administration of the complexities involved
with implementation of the auto enrollment provision, now is the time to act on
H.R. 2206 and fully repeal this provision.
you for your leadership on introducing H.R. 2206. We look forward to working with you
and your colleagues in Congress to enact the repeal of the auto enrollment
American Hotel & Lodging Association
American Staffing Association
American Supply Association
Associated Builders and Contractors, Inc.
Associated General Contractors of America
Auntie Anne’s, Inc.
Buffalo Wild Wings, Inc.
Burger King Corporation
Dine Equity, Inc.
Eat n’ Park Restaurants
Food Marketing Institute
Foot Locker, Inc.
HR Policy Association
International Association of Amusement Parks and Attractions
International Franchise Association
Jo-Ann Stores, Inc.
Lowe’s Companies, Inc.
National Association of Convenience Stores
National Association of Wholesaler-Distributors
National Franchisee Association
National Grocers Association
National Restaurant Association
National Retail Federation
OSi Restaurant Partners, LLC
Petco Animal Supplies, Inc.
P.F. Chang’s China Bistro, Inc.
Retail Industry Leaders Association
Ruby Tuesday, Inc.
SB Restaurant Co DBA Elephant Bar Restaurant
Texas Roadhouse, Inc.
The Cheesecake Factory
The Home Depot
U.S. Chamber of Commerce
Wolfgang Puck Worldwide, Inc.
Yum! Brands, Inc.