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Unum boosts lobbying spending

By: Mike Pare
(Contact)

Included in this article

Jim Sabourin

Unum Group spent almost $400,000 on lobbying in 2007, more than double the amount two years ago, as it focused on legislation related to long-term care insurance, genetic testing and terrorism.

Jim Sabourin, Chattanooga-based Unum’s vice president for corporate communications, said the company has rejoined a pair of industry trade associations and that higher spending is in part related to that move.

He said $211,000 of Unum’s lobbying spending last year was related to dues its pays the two trade groups. The legislation in which it’s interested has an industrywide focus, Mr. Sabourin said.

“Those are all part of an industry lobbying effort and not something we’re doing on our own,” Mr. Sabourin said about Chattanooga’s largest public company.

Jack Dolan, a spokesman for the American Council of Life Insurers, said it represents nearly 350 companies on issues of life, long-term care and disability insurance.

“We lobby on Capitol Hill, the states and have a pretty active litigation department at the appellate level,” he said.

Mr. Sabourin said Unum has an employee who is a registered lobbyist. Rent, salaries and administrative expenses amounted to more than $100,000, he said. Also, Unum spent $35,000 on third-party fees and consultants, the official said.

In addition, Unum has governmental affairs staff members in Chattanooga and Portland, Maine, Mr. Sabourin said.

Still, he said, Unum’s spending on lobbying is much less than some other insurers.

MetLife spent $4.4 million, Mr. Sabourin said, while The Hartford had $3.1 million in lobby expenditures in 2007.

In terms of long-term care, Unum lobbied on a bill to amend the Internal Revenue Code to allow the insurance to be offered under cafeteria plans and flexible spending arrangements.

“We think it should be more accessible,” Mr. Sabourin said.

The Terrorism Risk Insurance Act reduces liability on different insurers but is focused primarily on property and casualty companies, he said.

“We were lobbying for health and insurance companies to be included,” he said. “We were not successful.”

The company also lobbied on the Genetic Information Nondiscrimination Act, which would prevent health insurers from denying coverage or charging higher premiums based on the results of genetic testing.

Mr. Sabourin said Unum wanted to exclude its industry from that act.

“We’re somewhat skeptical of the issue of genetic testing,” he said. That legislation is still pending, Mr. Sabourin said.

UNUM LOBBYING

Amount spent:

* 2007: $394,000

* 2006: $312,000

* 2005: $166,000

Source: Unum