EXCLUSIVE — House Republicans are calling on constituents to provide feedback on the employer-sponsored health insurance structure as healthcare costs skyrocket.
On Monday, the 50th anniversary of the passage of the Employee Retirement Income Security Act, or ERISA, the Education and Workforce Committee is seeking input from leaders in the healthcare benefits industry for ways to lower premium costs.
Employer-sponsored insurance “is the core of America’s healthcare system,” wrote Chairwoman Virginia Foxx (R-NC) in a letter to healthcare industry leaders sent on Monday. “Employers have historically been at the forefront of creating innovative, market-driven approaches to providing health benefits, which drive down health care costs.”
In 2023, private health insurance premiums increased by 7%, according to nonpartisan healthcare thinktank KFF. The market research firm Mercer estimates that premiums are expected to increase by another 6.6% in 2024 if employers do not make cuts to coverage. If employers do cut coverage options for employees, premium costs are still likely to rise by at least 5.4% this year.
For more than 30 years, the top problem for the survival of small businesses, according to the National Federation of Independent Business, has been the cost of health insurance, with 48% of small businesses saying affording coverage has been a “critical problem.”
In her letter, Foxx said her committee is looking for more information on how to update ERISA requirements to reflect contemporary challenges, such as data sharing, cybersecurity, and specialty drug markets. A spokesperson for the committee told the Washington Examiner that Foxx’s goal with Monday’s letter is to gather information for legislative initiatives to fill in these gaps in the coming months.
The issue of rising healthcare costs has been an undercurrent of the 2024 presidential campaign.
The Biden administration in recent weeks has touted a string of accomplishments in the healthcare field, including lowering certain prescription drug costs under Medicare and enrolling a record number of people into Obamacare health plans.
Former President Donald Trump has renewed his vow to replace Obamacare with a “much better” plan. Former U.N. Ambassador Nikki Haley was a strong opponent of Obamacare during her governorship in South Carolina but has been quiet on the issue during her presidential campaign.
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“ERISA provides a framework for millions of worker’s retirement and health plans,” a spokesperson for the committee told the Washington Examiner. “That’s why it’s so important for the committee to hear from stakeholders about how it can build upon and improve this vital legislation to bolster high quality, affordable healthcare for employees.”
The comment period is open until March 15.
