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Will History Repeat Itself?



Recent media attention has us all taking note of dramatic cost increases set to impact Affordable Care Act coverage in 2017. Some states are projecting cost increases as high as 40 percent, with an anticipated average increase for all states at roughly 20 percent. This is due in part to low program enrollment (approximately 12.7 million enrolled versus 21 million expected), but more importantly to “adverse selection.” While healthy young adults are enrolling in large numbers, the numbers aren’t large enough to offset the high costs associated with covering sicker individuals who were among the first to enroll. Therefore, insurance companies are experiencing huge losses and starting to vacate the market. While the current administration promised us that Obamacare would bring better health care options to all Americans and lower the costs for everybody, it simply has not happened.

Meanwhile, the Department of Labor’s fiduciary rule is establishing new guidelines for qualified retirement plans and sales practice requirements, which the current administration promises will create better product selection and lower costs for the consumer. The financial services industry disagrees and believes that this increased government regulation will leave millions of Americans without the financial advice they need to retire comfortably. In fact, one well-known company with thousands of agents across the country has already announced that its agents will no longer offer securities products to clients for their retirement accounts. This is just the beginning of the limited access to financial advice that middle-Americans will continue to experience as a result of the rule.

WOW – Does this sound familiar? The government steps in with new and onerous regulations, making it more difficult and more costly to do business and ultimately hurting consumers, the very people it purports to protect.

Help us stop the DOL from making it more difficult for the American public to save for retirement and continue to get access to the advice they need from agents and financial advisors. Reach out to your elected officials and share with them how your business and your clients may be negatively affected by the fiduciary rule. Join NAFA in our efforts to solve this problem, protect our industry and prepare Americans for a more stable financial future.


“Chip” Anderson
Executive Director, NAFA

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