Last Thursday, President Trump signed an Executive Order (EO) that requests the Departments of Health and Human Services, Treasury and Labor to begin crafting regulations that could allow Association Health Plans (AHPs) to become a reality. AHPs would allow associations like NCA or even a group of clubs to offer health insurance to club employees throughout the U.S. This would expand the insurance markets from single states to all 50 and could bring down insurance rates through more competition.

Currently, insurance policies offered to employees by their clubs must comply with the Employee Retirement Income Security Act (ERISA), which regulates how employers offer benefits to employees—including health insurance. Only an ERISA-defined “employer” may offer insurance to employees, and AHPs do not currently fit into the standard definition of “employer.”

Congress has tried to amend ERISA, however, major health insurance companies have stopped those efforts. Since Congress has been unable to change ERISA, the president has decided to take a different tack.

This EO directs the Department of Labor (DOL) to broaden its interpretation of ERISA to allow AHPs to fit into the law’s definition of “employer.” So, rather than change the law, the president has asked DOL to change its perspective on the law. DOL will now begin the process of creating regulations and revising guidance to help with this changed perspective.   

There is a long way to go in this process. The EO requires DOL to provide these changes within 60 days. From there, the regulations will need to be proposed and then finalized, which will take at least six months. Of course, then there will be the inevitable lawsuits filed by the insurance companies.

While there will not be any final resolution to this for some time, it is an encouraging step to lowering insurance premiums.

NCA and our allies have long considered the creation of AHPs as a positive way to bring more health insurance options to club leaders and their employees. With the action taken by the administration, we may see that actually come to pass.

A strong supporter of the H-2B visa program (and other guest worker programs) has emerged as a key player in the immigration debate. Freshman Sen. Thom Tillis (R-N.C.) has been a major ally for the club industry on the H-2B visa issue during his short time in the Senate.

Tillis placed significant pressure on the Department of Homeland Security to speed up the approval of H-2B applications earlier this year. His home state needs temporary, foreign workers for many industries, including seafood and hospitality.

Prior to becoming a senator, he served as Speaker of the North Carolina House of Representatives where he was extremely supportive of easing the process for small employers to secure seasonal, temporary workers. Because of that, NCA’s ClubPAC supported his election effort in 2014.  

Tillis has proposed a bill, the Succeed Act, for the Deferred Action for Childhood Arrivals (DACA or so-called Dreamers) issue, too. Tillis’ bill is important because it includes provisions dealing with temporary foreign workers. By tying the high-profile DACA issue with the seasonal worker issue, the H-2B visa program may be on the radar for more of our elected officials, laying the groundwork for pro-club H-2B reform to be proposed and eventually passed. For the private club industry, this could be the only bill that can attract real attention and make it to the finish line.

The strongest Dreamer supporter in the Senate is Senate Minority Whip Dick Durbin (D-Ill.), who was surprised and encouraged by Tillis’ bill. Durbin has not signed on to the Succeed Act, but the two senators are in discussions and are working through issues.

The Succeed Act could be a vehicle that brings together Democrats and Republicans as they sift through the DACA problem. Our industry may still be able to get a win if H-2B visas can be addressed as a small part of the overall bill.

This bill will be tough to move forward as both Chambers remain heavily divided on how to handle illegal immigration. Of course, the only way to pass anything on the Dreamers (or any other issue relating to immigration) is by finding that sweet spot for both sides. With the Tillis bill, we might be getting closer.

With the House out of session this week and limited action taken in the Senate, there will be no WWU on 10/23, but it will return 10/30.

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That was the week that was in Washington. I hope you all find the Washington Weekly Update a valuable part of your NCA membership. If you have any questions or would like further information on these or any other issues affecting the club industry, please email me atsteele@nationalclub.org or call 202-822-9822.

Brad D. Steele

VP of Government Relations & General Counse
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