Job Creators Endorse Repeal of Health Law’s Automatic Enrollment Mandate

Arlington , VA - 5/9/2013

In a letter sent today, RILA joined 87 retailers, employers, and state and national business trade associations in endorsing a bill to repeal the automatic enrollment provision under the Affordable Care Act (ACA). The bill, the Auto Enroll Repeal Act, H.R. 1254, is sponsored by Congressman Richard Hudson (NC-08) and Congressman Robert Pittenger (NC-09).

Under the automatic enrollment provision, employers with 200 or more employees must automatically enroll an employee in a health coverage plan if one is not voluntarily chosen or coverage is not declined by the employee.

“The automatic enrollment may create additional confusion for our employees in an already complex benefit area, and could result in unnecessary hardship if they find themselves automatically enrolled in a plan in which they do not wish to participate,” the 88 job creators and business representatives stated in the letter. “In addition, the automatic enrollment requirement is redundant, expensive and unnecessarily burdensome for employers without increasing employees’ access to coverage.”

RILA strongly supports the repeal of the automatic enrollment provision and the introduction of H.R. 1254.

"RILA applauds Congressmen Hudson and Pittenger for introducing the Auto Enroll Repeal Act and recognizing the need to provide well-intentioned employers who offer health coverage to their employees and families with relief under the ACA requirements," said Christine Pollack, vice president of government affairs at RILA.

As the 88 organizations and associations stated in the letter, “Now is the time to address the challenges employees and employers face with the automatic enrollment requirements.”

A copy of the letter is available here. 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.

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May 9, 2013
   
The Honorable Richard Hudson                     The Honorable Robert Pittenger
U.S. House of Representatives                      U.S. House of Representatives
429 Cannon House Office Building                 224 Cannon House Office Building
Washington, DC  20515                                Washington, DC  20515

RE:  H.R. 1254, The Auto Enroll Repeal Act of 2013

Dear Congressmen Hudson and Pittenger:

On 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 H.R. 1254, the Auto Enroll Repeal Act of 2013.

Section 1511 of the 2010 health care law amends the Fair Labor Standards Act to insert a new Section 18A, “Automatic Enrollment for Employees of Large Employers.”  The law requires that employers with 200 or more full-time employees automatically enroll their full-time employees in health care coverage by their 91st day of employment, unless the employee had opted out prior to the deadline.  Employers that are subjected to this requirement are already bound by the health care law’s Shared Responsibility for Employers provision, which requires an offer of coverage to these same employees.

We are concerned that automatic enrollment may create additional confusion for our employees in an already complex benefit area, and could result in unnecessary hardship if they find themselves automatically enrolled in a plan in which they do not wish to participate.  In addition, the automatic enrollment requirement is redundant, expensive and unnecessarily burdensome for employers without increasing employees’ access to coverage. 

The Department of Labor has acknowledged this complexity in pushing off its implementation.  Guidance will not be ready to take effect in 2014, and compliance has been waived until rules can be promulgated for this complicated provision of the law.  Further complications arise when implementation must consider existing rules, such as the Lookback Measurement Method used to determine variable hour and seasonal employees’ status and eligibility for an offer of coverage.

Now is the time to address the challenges employees and employers face with the automatic enrollment requirement.  Thank you for your leadership on this critical issue.  We look forward to working with you and your colleagues in Congress to enact H.R. 1254, the Auto Enroll Repeal Act of 2013.

Sincerely,

7-Eleven, Inc.
Allegis Group, Inc.
American Hotel and Lodging Association
American Staffing Association
American Supply Association
Associated Builders and Contractors, Inc.
Associated General Contractors of America
AutoZone, Inc.
Bloomin’ Brands, Inc.
Brinker International, Inc.
Buffalo Wild Wings, Inc.
Cameron Mitchell Restaurants
CarMax, Inc.
Carlson Restaurants/TGI Friday’s
Church’s Chicken
Cracker Barrel Old Country Stores, Inc.
Darden Restaurants, Inc.
Delhaize America
DineEquity, Inc.
Dunkin' Brands, Inc.
Food Marketing Institute
H-E-B
Hilton Worldwide
HR Policy Association
Hy-Vee, Inc.
International Franchise Association
Jack in the Box Inc.
Jo-Ann Fabric & Craft Stores
Kelly Services, Inc.
Lettuce Entertain You Enterprises, Inc.
Limited Brands, Inc.
Lowe’s Companies, Inc.
ManpowerGroup
Marriott International, Inc.
Michaels Stores, Inc.
National Association of Convenience Stores
National Association of Health Underwriters
National Association of Wholesaler-Distributors
National Club Association
National Council of Chain Restaurants
National Grocers Association
National Restaurant Association
National Retail Federation
Pep Boys
Petco Animal Supply, Inc.
P.F. Chang's China Bistro, Inc.
Randstad US Staffing
Regis Corporation
Retail Industry Leaders Association
Ruby Tuesday, Inc.
Rusty Bucket Restaurant and Tavern
Texas Roadhouse
U.S. Chamber of Commerce
Visiting Angels
Volt Workforce Solutions
Wolfgang Puck Worldwide, Inc.
White Castle System, Inc.
Whole Foods Market
Yum! Brands, Inc.


Arizona Retailers Association
Alabama Grocers Association
California Independent Grocers Association
California Retailers Association
Connecticut Food Association
Georgia Food Industry Association
Illinois Food Retailers Association
Kansas Food Dealers Association
Retail Grocers Association of Greater Kansas City
Louisiana Retailers Association
Retail Association of Maine
Michigan Grocers Association
Michigan Retailers Association
Minnesota Grocers Association
New Hampshire Grocers Association
New Jersey Retail Merchants Association
North Carolina Retail Merchants Association
Ohio Council of Retail Merchants
Ohio Grocers Association
Pennsylvania Retailers’ Association
South Carolina Retail Association
South Dakota Retailers Association
Texas Food & Fuel Association
Texas Retailers Association
Utah Food Industry Association
Utah Retail Merchants Association
Vermont Grocers’ Association
Washington Retail Association
Wisconsin Grocers Association

Allie Brandenburger
Director, Communications
Phone: 703-919-8577
Email: allie.brandenburger@rila.org