A;pril 2006

Legislative Focus

The Chamber is committed to its role as the VOICE of the business community by being the leading advocate on issues affecting the business community. The Legislative Focus helps keep Chamber members up-to-date on the government and political happenings locally, state-wide, and federally.  If you would like to opt-out of receiving this email, please click the link at the bottom of this email.

Legislative Priorities

The Illinois Quad City Chamber of Commerce is an activist for an economic climate where businesses are able to prosper.  On your behalf we work within our region, state, and nation to advocate policies that are consistent with the interests of the business community.  Of particular concern to the Illinois Quad City Chamber is legislation dealing with health care, and tax structure/state budget.  Of ongoing interest to our business community are labor/employment and tort reform matters. The Illinois Quad City Chamber of Commerce Board of Directors has adopted legislative priorities which focus on these four areas with the intent to take a unified voice, a common agenda, and a strong message to Springfield.  To read more about our Legislative Priorities, click here.   

To contact any of these Illinois State Officials, click on the name below for phone number and address:

U.S. Senate
Senator Dick Durbin

 
Senator Barack H. Obama

U.S. House
Representative Lane A. Evans

Illinois Senate
Senator Michael Jacobs

Illinois House of Representatives
Representative Mike J. Boland

Representative Pat Verschoore

Illinois State Offices
Governor Rod R. Blagojevich

Lt. Governor Pat Quinn

Attorney General Lisa Madigan

Comptroller Daniel W. Hynes

Secretary of State Jesse White

State School Superintendent Randy J. Dunn

 
Treasurer Judy Baar Topinka

Healthcare

Medicare Reimbursement Requirements Strengthened
Medicare is defined as the secondary payer when payment should have been made under another benefit plan by another payer. All employers that sponsor one or more group health plans will be impacted by the new interim regulations that go into effect April 25, 2006 clarifying and expanding Medicare reimbursement requirements. Generally, the new regulations provide that if a primary insurer fails to pay a claim that Medicare later pays as proper, Medicare may seek reimbursement directly from the employer. The employer is then left to obtain reimbursement from its insurer despite having made an initial denial of the claim. For more information about interim regulations and ammendments, click here.

Tax Structure

Committes Working to Extend Tax Relief 
Key elements of President Bush's tax cuts are set to expire in the years immediately ahead, exposing taxpayers to major increases unless Congress acts. In fact, relief from the Alternative Minimum Tax (AMT) expired December 31, 2005. The House and Senate passed competing tax reconciliation bills that differ on key provisions. The Senate bill would extend last year's protection against the AMT through 2006 but says nothing about capital gains or dividends. The House bill would extend the 15% tax rate on capital gains and dividends for two years beyond its scheduled 2008 expiration but doesn't mention AMT relief. The obvious compromise is to do both, but that would be expensive. Both bills would extend for one year incentives for individuals to save for retirement and businesses to invest in R&D.

The death tax is scheduled to phase out completely in 2010 then spring back to its original level in 2011. The House voted 272-162 last year to kill the death tax for good, and Majority Leader Frist plans a Senate vote on permanent repeal in May.

Labor

Health Insurance Marketplace Modernization and Affordability Act 
The Senate Health, Education, Labor, and Pension Committee, (HELP) passed S.1955, “The Health Insurance Marketplace Modernization and Affordability Act of 2005." The legislation provides that trade and professional associations could independently pool their members across state lines gaining bargaining power that the government, big business, and unions currently enjoy when negotiating with insurers on health care prices. 

The cost and availability of health insurance is a top priority for 

America ’s small-business owners. The Small Business Health Plans (SBHPs) could save small businesses an estimated 15 to 30 percent. They also point out that SBHPs could help many small employers to increase health benefits and/or pay a higher share of workers' premiums. 

Should this legislation pass the full Senate, it will move to a conference committee that will combine S. 1955 with H. R. 525, the “Small Business Health Fairness Act of 2005.” 

Tort Reform

Medical Liabilty Reform Change Only Affects Insurance CodesOn March 27^th,  the U.S. Chamber Institute for Legal Reform (ILR) released a new ranking of the best and worst state legal systems. This list included Illinois among the worst states for legal fairness.

The 2006 State Liability Systems Ranking Study was conducted by Harris Interactive for ILR. The survey, now in its fifth year, polled more than 1,400 senior attorneys to explore how reasonable and fair the tort liability system is perceived to be by U.S. businesses.

"This survey sends a clear message to states whose legal climate drives away businesses, jobs, and economic development," said Tom Donohue, president and CEO of the U.S. Chamber of Commerce. "If you want a healthy state economy, clean up your act."

Watch for the next Legislative Focus to be sent May 19th.