This email shared an updated draft of The Council's FTC comment letter on proposed rulemaking (likely the non-compete rule) and announced a new Leader's Edge podcast series focused on Capitol Hill government affairs developments. The comment letter resource allowed member firms to review The Council's advocacy position and add their voice to the regulatory comment process. The Capitol Hill podcast series provides accessible coverage of legislative and regulatory matters affecting commercial insurance brokers.
FTC Proposed Non-Compete Clause Rule: Seeking Member Feedback on 2nd Draft of Joint Comment Letter by March 31
Below is a link to the “near final” second draft of The Council’s joint comment letter with the Wholesale & Specialty Insurance Association regarding the FTC’s proposed Non-compete Clause Rule. It incorporates the comments we have received to date from Council members.
The basic structure of the letter is unchanged and continues to note that The Council and WSIA support the FTC’s efforts to protect hourly and lower-paid workers. The letter also continues to highlight four key areas of concern for our members:
- Uncertainty around the Rule’s proposed “functional equivalence test” for non-solicitation restrictions
- The Rule’s allowance of non-compete covenants that are instituted as part of the sale of a business, but only for owners of 25 percent or more of that business
- The relevance of non-compete rules for highly-compensated and executive level employees vs. the population of workers who are negatively impacted by non-compete clauses
- The retroactive nature of the Proposed Rule as it relates to existing contracts
- Uncertainty around the Rule’s proposed “functional equivalence test” for non-solicitation restrictions
- The Rule’s allowance of non-compete covenants that are instituted as part of the sale of a business, but only for owners of 25 percent or more of that business
- The relevance of non-compete rules for highly-compensated and executive level employees vs. the population of workers who are negatively impacted by non-compete clauses
- The retroactive nature of the Proposed Rule as it relates to existing contracts
With respect to the Business Sale Exemption discussion (beginning on page 4 of the draft comment letter), we received a range of member input as to whether or not there should be a threshold for “material” ownership that would apply to exempt such “material” owners from the bar on non-compete agreements, and what that threshold should be. The Proposed Rule defines a “material” owner as someone who owns 25% or more of the business being sold. We believe that we are most likely to get some rationalization of this exemption if we include a bright line monetary ownership threshold as an alternative to the percentage of ownership threshold, and that that monetary amount must feel sufficiently robust. The lowest suggestion we have received is $250,000 and we used that amount in this draft to try to meet that burden. In addition to any comments that you may
have on the rest of the letter, we also welcome input on this approach and whether $250,000 is the right ownership threshold.
Members are encouraged to submit feedback by Friday, March 31. Questions or comments on the proposed rule should be sent to SVP of Government Affairs, Joel Kopperud.
The Alliance to Fight for Health Care Pushes for Extension of Telehealth Benefits
As a founding member of The Alliance to Fight for Health Care, The Council supports the organization’s efforts to preserve and strengthen employer-provided healthcare coverage. On March 20, The Alliance sent a letter to the Committee on Health, Education, Labor, and Pensions promoting bipartisan legislation that would make health care more affordable and high-quality for all Americans.
Of note to Council members is The Alliance’s support for an extension of telehealth flexibilities that would allow employers with high-deductible health plans (HDHPs) and health savings accounts (HSAs), to cover telehealth services on a pre-deductible basis.
Three Insulin Manufacturers Cut Insulin Prices for
Privately Insured
Sanofi is the latest drugmaker to announce that it will cap out-of-pocket costs for its insulin, Lantus, at $35 per month in 2024 for people with private insurance, which includes those with employer-sponsored and individual market coverage. About 33% of patients using insulin are privately insured. Eli Lilly, earlier this month, also committed to $35 per month. Novo Nordisk will lower prices by 75%, with its lowest price at $48.20. Together with Sanofi, the drug companies make up 90% of the insulin market.
On January 1, 2024, a cap that limits how much manufacturers have to rebate Medicaid will be eliminated as part of the American Rescue Plan Act. This means drug companies could face significant financial penalties. Lowering the list price of insulin will ultimately save the drugmakers from owing millions to the government. Given price cuts, Medicaid will likely end up paying the drug companies more to purchase and cover their drugs.
The Council & McKinsey Partner on Prescription Drug Benefits Survey
In response to continued interest from Council members in pharmacy benefit and prescription drug trends, The Council is partnering with McKinsey to conduct a survey that will gather insights around emerging products, solutions, plan designs and top employer concerns.
Survey participants will receive an exclusive invitation to a webinar with McKinsey to review the insights gained through the survey and in-depth market research, with an opportunity for Q&A.
This survey is open only to Council members. To participate in the survey or to recommend someone to participate, email Katie.King@ciab.com.
Leader’s Edge Presents the
Capitol Hill Chatter Podcast Series
In Leader’s Edge’s latest episode of the Capitol Hill Chatter podcast series, Council president Joel Wood is joined by special guest Rep. Mike Carey (R-OH). Rep. Carey shares his road to Congress via a special election, what he plans to do as a member of both the House Ways and Means Committee and the Committee on House Administration, and how inflation and fentanyl are affecting his constituents. Plus, Wood and The Council’s SVP of government affairs Joel Kopperud give us a rundown on the issues they’re tracking including updates on the Democratic Senatorial Campaign Committee, the Federal Trade Commission’s proposed non-compete rule and PBM transparency.
Missed the last episode with Rep. Jason Smith (R-MO)? Listen to it here.
The Q1 P/C Market Survey Launches
Wednesday, April 5, 2023
The Council’s quarterly P/C market survey will be launching Wednesday, April 5. The P/C survey tracks premium changes across 16 different lines of business. Firms that submit a response the first week the survey is open will receive exclusive early access to the results one week before the report is released.
If you have a contact at your firm you think would be best suited to respond, or just want to confirm your firm is on the list to receive the survey, reach out to zach.west@ciab.com.
The Next Cohort of The Insurance Professional School for
Property Casualty Begins September 2023
- Coverage application, not just comprehensive coverage knowledge
- Active learning that brings the role of risk mitigation to life
- Assignments that will push participants to the expertise that resides within their firms and learn the culture
- The integration of all aspects of risk management, coverage expertise and business acumen to develop as a professional with a holistic view of the industry
- Strong emphasis on the skills needed for success
- Coverage application, not just comprehensive coverage knowledge
- Active learning that brings the role of risk mitigation to life
- Assignments that will push participants to the expertise that resides within their firms and learn the culture
- The integration of all aspects of risk management, coverage expertise and business acumen to develop as a professional with a holistic view of the industry
- Strong emphasis on the skills needed for success
Participants are eligible to earn the Accredited Professional in Risk & Insurance (APRI®) designation upon completion of full learning experience.
Learn more or register.
The EBLF Registration Deadline is Today
Mark your Calendars for the 2023 CFO Conference
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