In a letter, 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 here.
