Last year, the Trump administration passed dramatic pro-growth, pro-family tax reform. Now, the administration is building on this success through a slew of new rules proposed by the Department of Labor and Department of Health and Human Services that will strengthen retirement savings, healthcare choice, and access to care for employees and employers as part of the administration’s regulatory reform.
The tax reform bill passed late last year has succeeded in raising wages and employee benefits have increased, while Americans at every income level have seen their taxes drop. The unemployment rate is at its lowest level since 1969 and small business optimism is at record high levels.
Business of all sizes are seeing tax reduction, while families and individuals will have more healthcare freedom through the repeal of the Obamacare individual mandate.
The administration is taking the next step by restoring choice and access for Americans across the country.
For instance, the Department of Labor and Secretary Alex Acosta have unveiled an association retirement plans rule that will allow small and mid-sized employers to band together to form a single retirement plan.
Today, too many workers are shut out of owning a retirement plan, which is causing a shortfall in savings. Although 42 million workers (roughly one-third of the workforce) are employed by a small business, (defined as a business with 1-100 workers), just 14 percent of these offer a retirement plan.
Nearly 75 percent of these workers have no retirement savings, according to a survey by Pew Charitable Trusts. Similarly, 25 percent of individuals ages 35-64 are likely to face a shortfall in retirement savings.
The DOL proposal will help address this problem by giving small businesses access to cost effective retirement plans that have the same protections and benefits that larger companies can offer.
More than one-third of small businesses cite cost as the main impediment, while others worry about the complexity and liability associated.
The new ARP rule will help address this problem by giving millions of workers access to individually owned retirement plans, like 401(k)s, that they can use to better prepare for their retirement.
This is just one example of the regulatory relief taken by the administration.
In contrast to the Obama administration, which pushed a healthcare model of top-down government control, the Trump administration is expanding choice and access.
The Trump Department of Health and Human Services and Secretary Alex Azar recently announced a rule expanding health reimbursement accounts so that small- and medium-sized employers can easily offer their workers an HRA to pay $1,800 of medical expenses per year.
More than 80 percent of small- and mid-sized employers offer their workers just one choice, and this rule will allow businesses more flexibility to offer their workers health insurance coverage.
In fact, the Treasury Department estimates that this will help 10 million workers and 800,000 businesses.
This regulatory relief is just one of many proposals undertaken by HHS. Earlier this year, the agency rolled out important flexibility over short-term, limited-duration health insurance plans by allowing families and individuals to purchase plans for 12 months with a total of 36 months of renewability.
These plans are exempt from Obamacare’s costly mandates and regulations, meaning more Americans will have access to affordable and flexible healthcare. As a result, these plans are expected to be 50 to 80 percent cheaper and will offer millions of Americans flexible care after several years of increasing premiums and narrowing choices in the Obamacare marketplace.
The administration has also allowed small businesses to band together and form association health plans.
Like the Labor Department’s expansion of retirement plans, AHPs are giving workers the flexibility they need due to economies of scale. As an added benefit, these plans are exempt from many Obamacare regulations, which will mean lower costs and more choice for those that use them.
This dramatic deregulation over retirement savings and healthcare choice and access is just the latest Trump win.
The Trump tax cuts passed last year have resulted in a stronger economy, tax reduction for workers and businesses, and has increased take-home pay for families.
The administration’s regulatory reform will build on this success in a way that directly helps Americans plan for retirement and pay for healthcare across the country.
Grover Norquist (@GroverNorquist) and Alex Hendrie are contributors to the Washington Examiner’s Beltway Confidential blog. Norqust is president of Americans for Tax Reform, where Hendrie is tax policy director at Americans for Tax Reform.
