3 Ways Federal Life, Health and Annuity Legislation Could Evolve Now

If, however, partisanship increases, or stays about the same, giant budget bills could become more important than ever, with lawmakers, congressional staffers and interest groups making more open, more formal efforts to tailor measures to fit into the giant budget bills.

2. Any new emphasis on bipartisanship could be good for life and annuity bills.

Groups such as the American Council of Life Insurers, the National Association of Insurance and Financial Advisors and Finseca have spent decades developing bipartisan legislative affairs strategies.

As a result, they have been able to attract both Democratic sponsors and Republican sponsors for efforts to get the Secure Act legislation through Congress, and for the new Secure Act 2.0 proposal.

If partisan gridlock persists, that could increase the focus on proposals that can be implemented with amendments that look like budget changes, such as changes in tax or deductibility rates, and decrease interest in proposals that are hard to mesh with budget bill rules, such as proposals that might require the creation of major new government agencies, and proposals that have nothing to do with government spending.

3. Medicare, Medicaid and long-term care finance bills might have an easier time than ambitious major medical insurance bills.

In recent years, lawmakers have been able to get some health insurance measures with bipartisan support, such as the 21st Century Cures Act, through Congress.

The new CAA 2021 package includes "surprise medical billing" sections and health care price transparency provisions that had bipartisan support.

But Republicans have not been able to pass many bills that make major changes to core Affordable Care Act commercial health insurance programs.

Democrats may now face similar problems with getting major medical insurance programs through Congress.

During the Congress that just ended, the 116th Congress, only 14 of the 48 senators who were Democrats, or who were independents who caucused with the Democrats, signed on as cosponsors of S. 1129, Sen. Bernie Sanders' single-payer "Medicare for All" health finance bill.

Some of the Democrats who will be new to the Senate in the 117th Congress have made a point of saying that they want to update the Affordable Care Act, but that they do not want to move the United States to a single-payer health finance system. Warnock and Ossoff, for example, have said that that they oppose Sanders' approach to creating an entirely government-run health finance system.

That may be a sign that Democrats in the new Congress will have trouble either passing a Medicare for All bill or, conversely, repealing the Affordable Care Act and returning the country to a framework that's similar to what was in place before 2010.

Measures to maintain and improve Medicaid and Medicare benefits have had some bipartisan support. Members of the 117th Congress may see Medicaid and Medicare as good targets for efforts to bring Democrats and Republicans closer together.

The effects of COVID-19 on nursing homes, the fact that Biden is 78, and the fact that several senators are over 80 may also increase lawmakers' interest in efforts to improve support for home care and adult daycare services, and to create new mechanisms people can use to pay for long-term care services.

If partisan gridlock persists, then health insurance policymaking may focus mainly around efforts to protect Medicaid against budget cuts, and to develop the bills needed to keep Medicare from becoming insolvent.

— Read 5 Kinds of Bills Biden Might Be Able to Get Through Congress, on ThinkAdvisor.

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