Details Announced for Chamber’s 2017 D.C. Fly-in

Hoosier business leaders can discuss public policy with their congressional members during the Indiana Chamber of Commerce’s annual D.C. Fly-in event on September 27-28.

The Washington gathering offers the opportunity for business leaders to meet with members of Indiana’s congressional delegation and let the lawmakers know how policies and bills being debated on the national stage will impact the state’s economy back home.

A highlight of the agenda: Sens. Joe Donnelly and Todd Young will lead a policy discussion following a dinner on the event’s opening night.

Day two includes a breakfast program that will feature Marc Lotter, special assistant to the President and press secretary to Vice President Mike Pence. Lotter is a native Hoosier with decades of experience in Indiana politics and was also Pence’s press secretary through the 2016 campaign and transition.

Group visits to congressional offices will take place after the morning program.

Zimmer Biomet is the dinner sponsor. Allegion is the cocktail reception sponsor. Build Indiana Council is the Legislative Briefing Sponsor.

“Zimmer Biomet is proud to be a long-time sponsor of the Indiana Chamber’s D.C. Fly-in. This is a unique opportunity to interact with members and staff of the Indiana Congressional delegation. There is no better way to discuss a wide range of policy issues affecting the Hoosier business community and to see firsthand what is happening on Capitol Hill,” says Chris Cerone, vice president of global government affairs for Zimmer Biomet of Warsaw.

Register for the D.C. Fly-in online or by calling customer service at (800) 824-6885. Cost is $199 per person, with group discounts available. Each attendee is responsible for securing travel arrangements. Discounted hotel rooms are available for Indiana Chamber Fly-in guests at the Hyatt Regency Washington on Capitol Hill.

Event sponsors are AT&T, The Boeing Company, Duke Energy, The Kroger Co., Old National Bank and Wabash Valley Power.

Donnelly Urges Market Stability on Health Care; Association Plans in the Offing?

Senator Joe Donnelly is urging the Trump administration to make a public commitment to continue cost sharing reduction (CSR) payments, which lower consumers’ deductibles and co-pays.

Early in the week, Donnelly continued his push for stability in the insurance markets in a letter to Hoosier Seema Verma – the administrator of the Centers for Medicare and Medicaid Services (CMS) – who he partnered with to help establish Indiana’s bipartisan Healthy Indiana Plan (HIP) 2.0 program through the Affordable Care Act. Donnelly’s letter comes as President Trump has declined to commit to continue making CSR payments. Donnelly says if these aren’t maintained, it could cause people to pay at least 15-20% more for health care.

In the letter to Verma, Donnelly wrote: “…It is our job to protect American families from unnecessary increases in the cost of health care, particularly those within our control. That is why I am very concerned by recent comments and actions made by the administration demonstrating a willingness and desire to undermine the health care system, even at the expense of the health and economic security of millions of Americans. These efforts to create uncertainty are harming working people and are already having a detrimental effect in Indiana.

“As we work to improve our health care system, we must first do no harm … The administration has the ability to help provide market stability today, and I respectfully request that the administration make a strong public commitment to continuing the CSR payments so that Congress can work together in a bipartisan fashion in an effort to reduce costs, expand access and strengthen the American health care system.”

Additionally, Donnelly said he’s recently heard from several insurance companies which provide coverage to Hoosiers – including two that have recently left the market – that cited lack of certainty, particularly as it relates to the CSR payments, as a key reason for increasing prices or leaving the market.

White House Press Secretary Sarah Huckabee Sanders said this week that CSR payments were, at this point, bailing out a failed law. She also said no final decision had been made by the President on continuing them.

Read Donnelly’s full letter to Verma.

Meanwhile, Sen. Rand Paul of Kentucky is making a case to President Trump to use his executive authority to permit associations and organizations to offer group health insurance plans. Paul says this could impact tens of millions currently in the individual marketplace. The White House has yet to comment on the possibility. This action would be very helpful to Indiana Chamber members and we have previously discussed this positive policy proposal with members of the Indiana delegation.

Legislation Favorable to Drug, Medical Device Manufacturers Passes Senate, Heads to President

Legislation which passed the Senate Thursday ensures that drug and medical devices can move to the market quicker. Manufacturers of these products would pay higher user fees and the revenue raised would help the U.S. Food and Drug Administration (FDA) review the items in a more expedited process. The law governing this process was set to expire by September 30, so it was imperative that the Senate act before members left for their August recess.

The legislation passed the Senate 94-1 with both Indiana senators supporting the legislation. The bill was not amended in the Senate and so therefore it now heads to the President for final signature.

The Indiana Chamber advocated for the passage of this bill during the Hoosiers Work for Health summit in July.

The legislation aligns with the Chamber’s legislative policy regarding the FDA: “The FDA has an important responsibility to make sure consumers get expeditious access to safe and effective products. Thus, the Indiana Chamber supports a well-resourced FDA, especially in the area of drugs and medical devices, through appropriated funds and user fees (tied to specific and measurable performance requirements for the FDA).”

Federal Health Care – Republicans Can’t Do It Alone

Progress on health care reform by Senate Republicans came to a halt very early this morning as the so-called “skinny repeal” of the Affordable Care Act (ACA) narrowly failed 49-51. All Democrats were joined in their opposition by Republican senators Susan Collins (Maine), John McCain (Arizona) and Lisa Murkowski (Alaska).

While Collins and Murkowski’s votes came as no real surprise, the GOP hope was for McCain to allow the bill to proceed to an expected conference committee for further work. But in McCain’s statement explaining his decision, he mentions the lack of complete certainty provided by House Speaker Paul Ryan that the bill wouldn’t be voted on as-is and passed by the House instead – as well as his opposition to voting on what he considered to be a “shell of a bill.”

Essentially, this outcome means the only path to reform now would appear to be a bipartisan approach, as Senate Majority Leader Mitch McConnell (Kentucky) alluded to in his remarks following the defeat.

Indiana’s Democratic senator, Joe Donnelly, has been pushing for this path all along and reiterated those thoughts after today’s vote:

“I still believe that by working together we can improve our health care system and, at a minimum, Congress and the administration should do no harm to the millions of Americans’ whose health and economic well-being are at stake. I share the frustration of Hoosiers and Americans who are tired of partisan proposals that fail to address issues with our existing health care system and the continued legislative uncertainty that is undermining the insurance markets.

“We should do the hard and necessary work to gather the input of doctors, nurses, hospitals and patients, and work in a bipartisan manner to make coverage more affordable and accessible for Hoosier and American families.”

Of note: Donnelly attended a dinner Wednesday evening with a bipartisan group of senators to discuss ways to work together on health care. In May, Donnelly also had a similar meeting.

Our junior senator, Todd Young, voted for the “skinny repeal” bill as “another step towards relieving Hoosiers and millions of Americans from the burdens of Obamacare. Too many Hoosiers have been left with too few options and rising costs. It is more important than ever that we keep our promise to them and fundamentally reform our health care system.”

Like Donnelly, Young is eager to strengthen the ACA and work in a bipartisan fashion to get that done.

“Going forward, I will participate in hearings in the HELP (Health, Education, Labor and Pensions) Committee and continue to work with my colleagues, on both sides of the aisle, to come up with a solution that provides long-term stability to our health care system and gives each and every Hoosier the opportunity to access quality and affordable insurance.”

Additionally, Young has previously looked for ways to find common ground. In the spring, he sent a letter to all Democratic senators urging them to share their views on what’s working and what’s not with the ACA.

Indeed, there are aspects of the ACA that both Democrats and Republicans have acknowledged as problematic; the medical device tax, which needs to be permanently repealed, is among them. So hopefully these areas can serve as a starting point for crafting a bipartisan solution.

From the Indiana Chamber’s perspective, the reality is that the ACA has not made life easier or costs cheaper for businesses (or many Hoosiers).

Separately, the ACA’s pending collapse – with insurers pulling out – isn’t surprising based on its inherently flawed assumptions. Unfortunately, very little of the congressional debate so far has focused on shoring up the ACA at its core, or how to put forth a replacement program that is stronger foundationally. Hopefully, that will occur in future discussions.

Indiana Delegation Talks Affordable Care Act Repeal

The vote to repeal and replace the Affordable Care Act (ACA) couldn’t get off the ground in the U.S. Senate. But President Trump, Vice President Pence and many members of Congress instead have called for a simple repeal of the ACA – with a replacement coming at a later date.

Congressman Luke Messer (IN-06) is on board with that process. “Hoosiers are sick and tired of endless debate on the Obamacare repeal bill, and the failure of Congress to act. This is D.C. politics as usual, and exactly why Americans sent the President to Washington to shake things up and get something done.

“We’ve had more than enough time to deliver on this promise to Americans, who have sent us here for three election cycles to repeal this failed law. I agree with President Trump that we must repeal Obamacare NOW and then work together on a plan to ensure Hoosiers get the health care they want and deserve.”

Meanwhile, Sen. Joe Donnelly urged bipartisanship in finding common ground. “The proposed Senate health care bill would have been disastrous for Hoosiers. The latest plan to repeal without any replacement is downright reckless, playing politics with the health and economic well-being of millions of American families.

“It is time to do the hard work of forging a bipartisan bill to strengthen our current health care system, so that we can reduce costs for Hoosier families, continue to protect people with pre-existing conditions, and preserve the good work states like Indiana have done to expand affordable health care. The American people are counting on us to take a thoughtful approach together, and I urge the Senate to take this path in the coming days.”

Congressman Larry Bucshon (IN-08) had a different take. “Obamacare is collapsing and as a result patients across the country are at risk as premiums skyrocket and insurers flee the exchanges. In Indiana, premiums have increased an average of 74% and two of our state’s four insurers recently announced their departure from the Obamacare exchanges. Hoosiers are being priced out of the insurance market, if they can find insurance at all. This is not the health care Americans were promised by President Obama and congressional Democrats when they passed Obamacare, and certainly not what they deserve.

“To me, this is personal. I spent more than a decade as a surgeon before coming to Congress. This is about the well-being of my constituents who are struggling to access quality, affordable health care under Obamacare. That’s why I made a promise to repeal and replace this failed law to help drive down costs, expand access, and get the federal government out of decisions that should be left up to patients and their doctors. The House did its job to fulfill our promise. I’m extremely disappointed that, thus far, the Senate has failed to live up to its commitment to the American people. It’s time for the Senate to act.”

Rep. Messer Appointed to Task Force on Reigning in Federal Government, Empowering States

Congressman Luke Messer (IN-06) was recently appointed by House Speaker Paul Ryan to serve on the recently created bipartisan Task Force on Intergovernmental Affairs, which is charged with working to restore the proper balance of power between federal, state and local governments.

Messer is among seven Republican House members appointed to the 13-member task force.

“Indiana has proven time and again that the best government is closest to the people it serves,” Messer said. “Our states, cities and counties are the true engine for innovation in government. I’m excited to work on this task force to combat federal overreach and return power to states.”

The task force will partner with state and local governments to determine where the federal government has overstepped and come up with solutions to return control to states and local entities. The task force will also provide a forum for states, cities and counties to showcase innovation and creativity in solving public policy problems.

“Federalism is not a Republican or Democrat principle, but an American principle – and one that is integral to a thriving culture and economy,” Speaker Ryan said. “But in recent years, the principle of federalism has been slowly chipped away at by an overzealous federal government. Under Chairman Rob Bishop’s leadership, the Task Force on Intergovernmental Affairs will study ways to restore the proper balance of power between the federal government and states, tribal and local governments, and eliminate unnecessary regulatory burdens facing communities across the nation.”

MEMBERSHIP

CHAIRMAN:
Speaker’s Designee Rep. Rob Bishop (R-UT)

REPUBLICANS:
Rep. Luke Messer (R-IN)
Rep. Gary Palmer (R-AL)
Rep. Mark Walker (R-NC)
Rep. John Culberson (R-TX)
Rep. Lee Zeldin (R-NY)
Rep. Jenniffer Gonzáles-Colón (R-PR)

DEMOCRATS:
Rep. Richard Neal (D-MA)
Rep. Raúl Grijalva (D-AZ)
Rep. Gerry Connolly (D-VA)
Rep. Norma Torres (D-CA)
Rep. Anthony Brown (D-MD)
Rep. Charlie Crist (D-FL)

ADVISORY COUNCIL TO THE TASK FORCE:
National Association of Counties (NACo)
National Governors Association (NGA)
Council of State Governments (CSG)
National Conference of State Legislatures (NCSL)
National League of Cities (NLC)
U.S. Conference of Mayors
International City/County Management Association (ICMA)

We Can Check These Education Matters Off the List (For Now)

For the last decade, the Chamber has strongly advocated to have a state-funded high quality pre-K program for children from low-income families. While we were successful in achieving a small pilot program for five counties a few years ago, we were able to significantly increase the state’s investment this legislative session. The Chamber helped to lead a strong coalition of community leaders, businesses, philanthropies and providers to achieve $44 million appropriated in the two-year budget (HB 1001) to expand the pilot. We can now increase the number of counties from the original five to up to 20, with a preference given to rural areas.

Separately, we successfully advocated for a lowering of the county match of dollars from a base of 10% down to 5%. In addition, we worked on offering up to 20% of the appropriated dollars to be used for capacity-building grants to allow for providers to grow more high-quality placements. This was a priority for both the House and Senate leadership, as well as Gov. Holcomb and the final bills passed with strong bipartisan votes of 82-16 and 31-19, respectively.

The Chamber also were able to pass a bill (SB 248) that would allow small school corporations situated in the same or adjoining counties to consolidate services if 20% of legal voters in both school districts petition the trustees of their respective school corporations. A small school consolidation grant that was originally included in this bill was moved into the budget to help offset costs. The Indiana Chamber has been supportive of this legislation in previous sessions and most recently, the Indiana Chamber Foundation has commissioned and is finalizing a study that shows the direct correlation between smaller school corporations and lower postsecondary attainment for students.

The Chamber has had a long-standing policy to support the opportunity to reduce administrative costs by merging or consolidating administrative services in smaller school districts, which we believe will in turn reduce the duplication of programs or services, increase cost efficiencies relating to the use of school facilities, plus reduce debt and provide for establishing other cost-cutting measures.

And we can now check off a legislative agenda item that the Chamber has been advocating for over 30 years to complete. House Bill 1005 will move the Superintendent of Public Instruction from an elected to appointed position. We had originally advocated for this bill with an effective date of 2021 (and therefore no election in 2020); however, the Senate version of the bill died by surprise on the Senate floor on third reading. That meant to consider the House version (which was virtually identical), the content had to be “substantially different” than the failed bill, per Senate rules.

Therefore, the Senate amended the bill to change the effective date to 2025 and include a residency requirement of two years and have certain educational experience. The Chamber did not support these changes as we felt that Indiana’s education leader should be the best person available and no other appointed state agency position has such required qualifications. However, it was decided by Senate leadership and counsel that the changes had to remain for the measure to proceed. So while we are extremely happy that we were able to get the position appointed, we are disappointed with the additional requirements. The Chamber will continue to advocate for these to be stripped from statute in subsequent sessions, although we feel that it will likely be a very difficult lift.

On the Federal Front: Around the Horn

The U.S. House of Representatives was on a week-long recess, which means our delegation was back home and visiting with their constituents around the state. The Senate, however, remained in D.C. working. Both will continue on the job in Washington starting next week until their recess around Memorial Day. A few news and notes:

* Congressman Larry Bucshon, M.D. (IN-08) held a job fair in Terre Haute on Wednesday in coordination with WorkOne Western Indiana, Indiana State University and the Terre Haute Chamber of Commerce. The event, held at Indiana State University’s Hulman Center, afforded potential employees the opportunity to meet with employers hiring in the Wabash Valley. A special emphasis was given to hiring veterans.

* Bucshon recently attended the Indiana Chamber’s I-69 Regional Summit in downtown Indianapolis. He was fresh from the floor vote in Congress on health care reform and also took time to meet with Chamber executives to discuss the topic.

* Congressman Jim Banks (IN-03), a member of the House Armed Services Committee, issued the following statement on Thursday regarding reports that the Trump Administration is considering sending more American troops to Afghanistan:

“I am glad that President Trump is willing to seriously consider the request of his commanders on the ground, who are asking for additional forces. We’ve been at war in Afghanistan since 2001, but in recent years, decisions about troop levels have been based on politics instead of military strategy. We’ve invested too much blood and treasure in Afghanistan to tolerate a stalemate or defeat. I look forward to learning more about the administration’s plans in the coming days.”

* U.S. Sen. Joe Donnelly has released his Foundation for Families Agenda – a series of policy proposals aimed at improving the quality of life for Hoosier families. Included in the policy agenda:

  • Paid family and medical leave
  • Expanding access to pre-K and quality childcare options
  • Affordable higher education
  • Equal pay for women

Donnelly released a video explaining his agenda. He stated, “I am unveiling the Foundation for Families Agenda because we need to ensure our policies and priorities support hardworking Hoosier and American families. When our families succeed, so
does our economy. The foundation for our families should include family leave, options for affordable childcare and pre-K, access to an affordable college education, and the assurance that Hoosier women are paid equally when they do the same job as their male counterparts. These are common sense ideas that I am hopeful we can advance in a bipartisan manner in the Senate.”

* Many news organizations are speculating that a potential candidate to be the new FBI director might be the current president of Anderson University, John Pistole. Pistole is former deputy director of the FBI (and led significant counter-terrorism efforts) and past head of the Transportation Security Administration. He has declined all requests for interviews since the speculation began, but a few friends and family spoke to the Indy Star.

* Indiana Secretary of State Connie Lawson has been tapped to serve on President Trump’s national commission investigating the integrity of American elections; see The Northwest Indiana Times story. Vice President Mike Pence is chairing the commission.

A Flurry of Executive Orders

President Trump’s number of executive orders has now topped 30; a look at the latest that occurred during the week:

  • America First Offshore Energy Strategy – Akin to a study committee, it directs Interior Secretary Ryan Zinke to review the current five-year development plan on the Outer Continental Shelf for offshore oil and gas exploration, as well as review the regulations and permitting process for development and seismic research. Zinke also will take comments from the public in addition to conducting his own examination – probably through the U.S. Fish and Wildlife Service with input from the Department of Exterior and the Environmental Protection Agency. The order also prevents Secretary of Commerce Wilbur Ross from designating any new or expanding existing marine monuments and/or sanctuaries. Most likely, President Trump – even if he wins another term – will be out of office before anything could really change in this area.
  • Establishment of the Office of Trade and Manufacturing Policy – The goal is strengthening domestic manufacturing and reducing the trade deficit. This directive puts Peter Navarro, President Trump’s principal trade adviser, in a permanent post – one enforcing the “Buy American” policies the President has established as a priority. On a related note, signed the same day was the Order Addressing Trade Agreement Violations and Abuses. “As far as I can tell, there has never been a systematic evaluation of what has been the impact of the World Trade Organization agreement on the country as an integrated whole,” Ross said during the press announcement. The Indiana Chamber strongly supports free trade agreements that create free and fair trade for the United States. We believe that international trade touches Indiana business of all sizes at some level. With 95% of the world’s consumers outside the U.S., Indiana and the nation would be shortsighted not to recognize the benefits of maintaining and even expanding our commerce ties with other countries.
  • Establishment of the American Technology Council – The objective is to help the government transform and modernize its digital services. President Trump will preside over the group, which will give “advice to the president related to policy decisions” regarding our government’s use of information technology.
  • Order Promoting Free Speech and Religious Liberty – Undoubtedly heavily influenced by Vice President Mike Pence, this directive offers relief to those groups that object on religious grounds to the Affordable Health Care Act provision mandating employers to provide certain health services, including contraception. They now can lawfully not abide by this provision. The order also allows the Internal Revenue Service to exercise “maximum enforcement discretion” over the Johnson amendment, which prohibits tax-exempt religious entities from stating political endorsements or opposition to a candidate.

Budget Deal Reached in Congress – But Process Broken

The House and Senate passed a budget deal to secure federal funding until the end of September 2017 last week. The House passed the funding measure by a vote of 309 to 118 on Wednesday, and the Senate followed suit 79-18. It is important to note that the Indiana delegation was divided – and not by political party – on the $1.1 trillion spending proposal.

Republican House members Jim Banks (IN-03), Trey Hollingsworth (IN-09) and Todd Rokita (IN-04) voted against the measure, while both House Democrat members André Carson (IN-07) and Pete Visclosky (IN-01) voted yes with the rest of the Hoosier delegation.

Congressman Hollingsworth released the following statement after casting his vote against the continuing resolution. “The spending bill that was brought before the House of Representatives today failed, yet again, to address the conservative principles that Hoosiers and Americans demanded to see this past November. For this reason, I voted against the $1.1 trillion spending measure that neglected critical priorities such as our nation’s nearly $20 trillion debt.”

Similarly, Congressman Banks added: “This legislation fails to properly address our $20 trillion national debt and reduce the size and scope of the federal government. As work immediately begins on next year’s spending bills, I am hopeful that Congress will follow the regular budget order and work with the Trump Administration to cut spending and change the Washington status quo.”

Despite passage of this funding measure, negotiations will begin again soon to pass a budget starting October 1 – with many of the same arguments on spending to be rehashed. But this has become all too familiar. Congress has regularly failed to meet the deadlines required by the Congressional Budget Act of 1974 under both Republican and Democrat control. In fact, the last annual federal budget approved by the U.S. Senate was on April 29, 2009. The federal government has operated by enacting these series of continuing resolutions – short-term measures that keep the government running and spending money at previously adopted rates.

The Indiana Chamber believes this is a gross dereliction of duty, as the federal government has spent trillions since the last adopted budget, further adding to the debt.

What the Indiana Chamber would like to see is Congress move from a yearly (or semi-yearly) mad dash to a biennial budget system. This would take much of the politics out of the budget process and would encourage efficiency in the management, stability and predictability of federal funding, especially for Indiana. A biennial budget would also enhance congressional oversight of government operations and encourage better policy planning. Biennial budgets should occur during non-election years to promote bipartisanship (or at least lessen partisan tensions) in the budgetary process. We can dream!