RILA Urges “No” Vote on Health Care Package 

The Retail Industry Leaders Association (RILA) reacted to health care reform language changes released yesterday and urged members of the House of Representatives to vote “no” when the bill comes up for a vote this weekend. 

 “RILA has actively supported and constructively engaged in the effort to reform America’s health care system to reduce costs and expand retailers’ ability to tailor the plans they offer to the unique needs of their employees; this legislation does neither. RILA urges members of Congress to oppose this bill, and to start over on a bill that better addresses the needs of employers and individuals alike,” said John Emling, senior vice president of government affairs.

Throughout this debate RILA has been an outspoken advocate of meaningful reform of America’s health care system to reduce costs and expand coverage to more Americans, while preserving retailers’ abilities to design and offer health benefits that best meet the needs of their employees.

 Specifically RILA has advocated for:

 Preservation of the Employee Retirement and Income Security Act (ERISA), which allows employers to control costs and offer the same level of insurance to employees across state lines.

• A 90-day waiting period for new hires. Immediate automatic enrollment of new employees into health care benefits would dramatically increase administration and benefit costs for high-turnover industries.
• The exemption of part-time, seasonal and temporary employees from any type of employer mandate.
• Reforms that reduce ever-escalating costs employers face if they choose to offer health plans to their employees.
• A clear definition of full- and part-time employees. In service sector industries, it is commonplace for employees either to be temporary or to have schedules that fluctuate over and under 30 hours per week.

The legislation released yesterday addressed some of these concerns; specifically, it excludes part-time employees from mandated coverage and provides employers with a reasonable 90-day waiting period before enrollment of new employees. However, the legislation failed to include the meaningful cost-containment measures that RILA sought. Further, prescriptive benefit requirements contained within the bill will encroach upon ERISA and will undermine retailers’ ability to offer the most affordable plans their employees often prefer.

“We applaud changes made that acknowledge the consequences of mandated part-time coverage and automatic enrollment on the retail industry. Unfortunately, after more than a year of debate, we are left with no choice but to oppose this legislation, which undermines the flexibility RILA members need to continue providing quality and affordable health care benefits to millions of employees and their families,” concluded Emling. 

RILA is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.

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