All Posts By

Robyn Boerstling

Health Reform: One Bill at a Time

By | Shopfloor Policy | No Comments
The House Ways and Means Committee will soon mark up bipartisan legislation to repeal the Independent Payment Advisory Board (IPAB), a non-elected body established as part of the Affordable Care Act (ACA). The original intent for the creation of the IPAB was for the executive branch to form an appointed independent body to decrease the growth rate of Medicare expenditures and do so without the input or approval of Congress. Unfortunately, the IPAB takes congressional oversight and decision-making out of the equation and allows blunt actions to the Medicare program go unchecked. The National Association of Manufacturers (NAM) agrees with hundreds of other groups: the IPAB must go.

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Health Care Inaction Disappoints, Work Will Continue to Address ACA Concerns

By | Shopfloor Policy | No Comments
While manufacturers are disappointed that the Senate effort to repeal key provisions of the Affordable Care Act (ACA) did not come to fruition by the September 30 budget reconciliation deadline, work will continue to address the employee benefits tax known as the “Cadillac” tax, the medical device tax, the health insurance tax (HIT) and other onerous aspects of the ACA. In fact, while the Graham-Cassidy proposal fully repealed the 2.3 percent excise tax on medical devices, it was silent on the HIT and the 40 percent excise tax on employee benefits.

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Manufacturers Taking Innovative Risks Leads to Rewards for All

By | Shopfloor Policy | No Comments

Innovation in manufacturing requires investment. People, research, facilities and advanced technology are all key components that contribute to the next great breakthrough in products and processes. Manufacturers from every sector have driven innovation because they have placed a high priority on investing in these areas. In fact, manufacturers account for two-thirds of all private-sector investment in research and development. This has resulted in a competitive advantage for manufacturers in the United States allowing them to grow their business here and around the world. Read More

Environmental Streamlining E.O. Opens Critical Relief Valve to Build Additional Infrastructure

By | Shopfloor Main, Shopfloor Policy | No Comments

Today, the president issued an executive order to streamline the federal permitting approval process as a part of his infrastructure initiative. Specifically, the executive order will simplify the permitting process to provide for one federal decision that should be made within two years. The executive order establishing discipline and accountability in the environmental review and permitting process for infrastructure projects can be found here.

Manufacturers welcome today’s news and have long called for federal leadership in reducing excessive red tape in the environmental permitting process for infrastructure projects. Accountability and transparency for all permitting decisions are critical to achieving a set of best practices and certainty that will encourage additional private-sector investment and efficiency. Infrastructure should build in a period of a few years, not a decade.

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Looming Deadlines on Health Care Taxes Require Urgent Action

By | Health Care, Shopfloor Policy | No Comments
While manufacturers are disappointed that the Senate was unable to pass a full repeal of the Patient Protection and Affordable Care Act (ACA) in July, legislative efforts to combat the negative consequences of the ACA must not only continue but also be resolved before new taxes raise health care costs.The manufacturing industry has a history of leading the business community in providing health benefits to employees; 98 percent of National Association of Manufacturers’ members provide health insurance to employees. For that tradition to continue, Congress must act quickly to prevent the job-killing ACA-related taxes from going into effect in 2018. That means taking quick and decisive action when the House and Senate return from their August recess.

A new Oliver Wyman report just released demonstrates the Health Insurance Tax (HIT) will result in higher health insurance premiums totaling $22 billion for more than 100 million Americans nationwide. This ACA tax will be paid by many, including those who are “fully insured,” meaning those employers who work directly with insurance brokers to purchase employee health plans. Even retirees who are accessing insurance through Medicare Advantage programs will be hit by the HIT.

For manufacturers who are fully insured and those purchasing individual plans, this tax only adds to rising costs and higher premiums. Joe Eddy, president and CEO of Eagle Manufacturing, told his story before the House Education and the Workforce Committee earlier this year. He explained the ACA taxes and compliance burdens “have been costly, disruptive and distracting from the things we are good at doing as manufacturers.”

According to the Oliver Wyman report summarized here, the HIT could raise the cost of premiums by an additional $540 for employees’ families receiving health benefits from fully insured larger employers. Small business owners and their employees could shoulder an additional $500 for family coverage as a result of the HIT. These cost increases are preventable if Congress acts. Manufacturers provide competitive health benefits to attract and maintain skilled employees and because manufacturers know it’s the right thing to do. Congress should be making it easier to provide insurance, not more difficult.

Regrettably, it’s not just the HIT. The medical device tax—another tax that discourages innovation, growth and job creation—is ready to go into effect next year. In 2015, a temporary suspension of the 2.3 percent excise tax on medical device manufacturers was enacted after 29,000 jobs were lost as a result of the misguided tax. However, that two-year relief runs out at the end of 2017, making full repeal of this tax critical to manufacturers of medical devices. Manufacturers support immediate action to permanently repeal the medical device tax to prevent this tax from eliminating jobs and hurting local economies in all 50 states.

It was unfortunate that the Senate did not pass major health care reform legislation in July, but manufacturers urge the Senate not to give up efforts. Both the House and Senate must advance opportunities to address the burdensome taxes associated with the ACA because the deadlines are around the corner and the clock is ticking.


FDARA Reauthorization Critical to Advancement of Lifesaving Medicines

By | Health Care, Shopfloor Policy | No Comments

This morning, the Senate is voting on H.R. 2430, the Food and Drug Administration Reauthorization Act of 2017 (FDARA), hopefully with the affirmative action of sending the bill to President Donald Trump’s desk. The bill was passed by the House of Representatives with overwhelming bipartisan support in July.

As noted in a National Association of Manufacturers’ letter to the Senate, “FDARA is the ultimate public–private partnership that supports patients who need lifesaving medical treatments while promoting science, research and technological innovation.”

Manufacturers in America lead the nation in research and development (R&D), driving more innovation than any other sector. Pharmaceutical manufacturers, in particular, account for nearly one-third of all manufacturing R&D. In turn, the United States is a global leader in the development of medical breakthroughs.

Reauthorization of the FDA’s user-fee program would support the research pipeline and accelerate the development of new medicines and treatments. The NAM supports the Senate’s effort to act quickly in voting to reauthorize FDARA as it stands before adjourning for recess. Any delay to this critical legislation would jeopardize America’s position as a global leader in medical discovery.

Senate Must Address Health Insurance Tax and Other Burdens Associated with the ACA—the Clock Is Ticking

By | Health Care, Shopfloor Policy, Taxation | No Comments

Efforts to stop the impacts of the onerous Health Insurance Tax (HIT) must continue as the Senate debates health care legislation. This $100 billion tax levied on fully insured health plans is paid by consumers and, if left unaddressed, will be a shock to retirees on Medicare Advantage and Part D plans as well as employers, individuals and families who purchase off-the-shelf health care plans. That tax will go into effect next year.

Manufacturers are fully behind repealing the “Cadillac” tax, the medical device tax, the health insurance tax and the pharmaceutical tax as well as reducing the burden of the employer mandate. The National Association of Manufacturers sent a key-vote letter to the Senate on Wednesday in support of Amendment 271 to underscore the importance of action on these issues. Unfortunately, the amendment failed in a 45–55 vote.

A full repeal of the Affordable Care Act (ACA) will help employers contain rising health care costs and provide much-needed predictability so that manufacturers can continue providing quality health care to employees. Manufacturers encourage the Senate to unlock the stranglehold of the ACA on manufacturers.