Federal Flood Insurance Program Faces Uncertainty Again
By: John Prible, Ryan Young
Last September, President Barack Obama signed a one-year extension of the National Flood Insurance Program (NFIP) into law. That year-long extension is set to expire at the end of this month—Sept. 30, 2011—unless Congress acts on a long-term reform bill or yet another short-term extension.
If this seems like déjà vu, it should. In the last two years, the NFIP has received numerous short-term extensions from Congress, the longest being for one year and the shortest for a mere 26 days. The program also officially expired four times during that period with the longest expiration lasting an entire month.
There are many reasons for both the short-term extensions as well as the temporary expirations that have accompanied them, but they all boil down to the simple fact that many members of Congress want to make serious reforms to the program and want to pair these reforms with a long-term extension. The use of an artificial deadline is a common occurrence in Washington, and in many ways, the debt ceiling compromise is the same concept: Congress has until Dec. 23, 2011, to pass a plan is recommended by the “super committee”or else face a series of automatic cuts.
Unfortunately for the NFIP, this game of artificial deadlines started in 2005 and not much has changed in the past six years. that the 2005 hurricane season, and specifically Hurricanes Katrina and Rita, caused many stakeholders, including the Big “I,” to call for significant reforms to the program. In 2006 the first bipartisan reform bill was introduced (and passed) in the U.S. House of Representatives. In 2008, a similar bill passed both the House and the Senate, but Congress adjourned before resolving their differences. In the latest round earlier this year, the House passed a bill; the Senate Banking Committee was also set to release and “mark up” their bill at the end of July but ran out of time before the August congressional recess. Each of these bills contains a five-year extension of the NFIP, and each of them also includes essential reforms to give the NFIP stability for the future.
The Big “I” strongly supports each of these pieces of legislation, and is working closely with both the House and Senate on this year’s reform efforts. There is real hope that 2011 could finally be the year when Congress gets a significant reform bill across the finish line. As progress is made in the Senate (and especially in resolving differences between the House bill and Senate bill), it may be in the best interest of all involved that Congress pass another short-term extension in order to provide time for the Senate and House to wrap up the finishing touches on the reform bill. If, however, it becomes clear that this year will not be the year of reform, then the Big “I” hopes Congress will finally grant the NFIP, its 5.6 million consumers and its thousands of independent agents a measure of stability for the present in the form of a very overdue long-term extension.
John Prible (john.prible@iiaba.net) is Big “I” vice president for federal government affairs.
Agents Can Make $100 per PCIP Enrollee
Recently, the U.S. Department of Health and Human Services (HHS) announced changes to the temporary Pre-existing Condition Insurance Program (PCIP) that directly affect many Big “I” members. Specifically, in states that participate in the federal health care program, licensed agents and brokers will now be paid a flat fee of $100 for each eligible consumer they enroll. However, this program is only available in the 23 states that chose to participate in the federal risk pool (map available at https://www.pcip.gov/StatePlans.html).
For more information and to register as an agent/broker for enrollment in PCIP, candidates must visit www.pci plan.com and click on the “Broker” tab. Once there, agent/brokers can register, set up a broker account and electronic fund transfer (EFT) account and submit referral forms via a secured login for each applicant they refer.
To qualify for PCIP, a consumer must (1) be a U.S. citizen, (2) be without health insurance coverage for six or more months and (3) obtain a letter from his doctor dated anytime within the last 12 months stating he has a
pre-existing condition.
The Big “I” is encouraged by the HHS decision to involve producers in the enrollment in PCIP and hopes that it will remember the important role agents and brokers play in both health insurance education and enrollment as it continues to develop the rules and regulations for the upcoming Health Insurance Exchanges, set to begin in 2014.
Ryan Young (ryan.young@iiaba.net) is Big “I” senior director of federal government affairs.
If this seems like déjà vu, it should. In the last two years, the NFIP has received numerous short-term extensions from Congress, the longest being for one year and the shortest for a mere 26 days. The program also officially expired four times during that period with the longest expiration lasting an entire month.
There are many reasons for both the short-term extensions as well as the temporary expirations that have accompanied them, but they all boil down to the simple fact that many members of Congress want to make serious reforms to the program and want to pair these reforms with a long-term extension. The use of an artificial deadline is a common occurrence in Washington, and in many ways, the debt ceiling compromise is the same concept: Congress has until Dec. 23, 2011, to pass a plan is recommended by the “super committee”or else face a series of automatic cuts.
Unfortunately for the NFIP, this game of artificial deadlines started in 2005 and not much has changed in the past six years. that the 2005 hurricane season, and specifically Hurricanes Katrina and Rita, caused many stakeholders, including the Big “I,” to call for significant reforms to the program. In 2006 the first bipartisan reform bill was introduced (and passed) in the U.S. House of Representatives. In 2008, a similar bill passed both the House and the Senate, but Congress adjourned before resolving their differences. In the latest round earlier this year, the House passed a bill; the Senate Banking Committee was also set to release and “mark up” their bill at the end of July but ran out of time before the August congressional recess. Each of these bills contains a five-year extension of the NFIP, and each of them also includes essential reforms to give the NFIP stability for the future.
The Big “I” strongly supports each of these pieces of legislation, and is working closely with both the House and Senate on this year’s reform efforts. There is real hope that 2011 could finally be the year when Congress gets a significant reform bill across the finish line. As progress is made in the Senate (and especially in resolving differences between the House bill and Senate bill), it may be in the best interest of all involved that Congress pass another short-term extension in order to provide time for the Senate and House to wrap up the finishing touches on the reform bill. If, however, it becomes clear that this year will not be the year of reform, then the Big “I” hopes Congress will finally grant the NFIP, its 5.6 million consumers and its thousands of independent agents a measure of stability for the present in the form of a very overdue long-term extension.
John Prible (john.prible@iiaba.net) is Big “I” vice president for federal government affairs.
Agents Can Make $100 per PCIP Enrollee
Recently, the U.S. Department of Health and Human Services (HHS) announced changes to the temporary Pre-existing Condition Insurance Program (PCIP) that directly affect many Big “I” members. Specifically, in states that participate in the federal health care program, licensed agents and brokers will now be paid a flat fee of $100 for each eligible consumer they enroll. However, this program is only available in the 23 states that chose to participate in the federal risk pool (map available at https://www.pcip.gov/StatePlans.html).
For more information and to register as an agent/broker for enrollment in PCIP, candidates must visit www.pci plan.com and click on the “Broker” tab. Once there, agent/brokers can register, set up a broker account and electronic fund transfer (EFT) account and submit referral forms via a secured login for each applicant they refer.
To qualify for PCIP, a consumer must (1) be a U.S. citizen, (2) be without health insurance coverage for six or more months and (3) obtain a letter from his doctor dated anytime within the last 12 months stating he has a
pre-existing condition.
The Big “I” is encouraged by the HHS decision to involve producers in the enrollment in PCIP and hopes that it will remember the important role agents and brokers play in both health insurance education and enrollment as it continues to develop the rules and regulations for the upcoming Health Insurance Exchanges, set to begin in 2014.
Ryan Young (ryan.young@iiaba.net) is Big “I” senior director of federal government affairs.
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