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WASHINGTON – Ahead of the 50th anniversary of the Employee Retirement Income Security Act of 1974 (ERISA), Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) sent a letter to members of the employee health benefits community seeking feedback on ways to build upon and strengthen ERISA, the foundation of employer-sponsored health care.

In the letter, Foxx writes: “ERISA’s federal preemption of state insurance laws permits employers to design benefit plans tailored to the needs of employees and their families, and it is viewed by many employers as essential to their sponsorship of health and retirement benefits. Without preemption and uniformity, administrative complexity and increased costs would cause them to stop offering health benefits or to charge significantly more for employees’ health coverage.”

The letter continues: “ESI is the core of America’s health care system. Employers have historically been at the forefront of creating innovative, market-driven approaches to providing health benefits, which drive down health care costs. The vast majority of Americans covered by ESI are satisfied with their employer-sponsored coverage. … However, health costs continue to rise at unsustainable rates. In 2023, annual premiums for family coverage rose by 7 percent. The increase in health costs have led large employers subject to the Affordable Care Act employer mandate to reduce benefits and small employers increasingly to drop coverage.” 

Foxx concludes by requesting information from members of the employee health benefits community, including:

• ERISA Preemption: To what extent do state laws prevent or purport to prevent multistate employers from offering a uniform set of benefits across state lines? Please list the specific state laws which pose or may pose barriers to offering uniform benefits.
• Fiduciary Requirements: How can Congress build upon ERISA regarding the fiduciary obligations of plan sponsors, administrators, and trustees in the management of health benefit plans?
• Reporting Requirements: The Committee seeks comments on ways Congress can better support electronic disclosure and when electronic disclosures are beneficial to the plan participant.
• Prohibited Transactions: The Committee broadly seeks feedback on how changes in transparency affect how plan sponsors determine whether spending and costs are reasonable and necessary.
• Data Sharing: The Committee seeks feedback on the types of health care quality measures and how Congress may help plans uniformly measure, assess, and compare quality data.
  
• Cybersecurity: The Committee seeks feedback on privacy regulations regarding business associates under the Health Insurance Portability and Accountability Act and whether privacy protections within these agreements can be strengthened through ERISA. 
• COBRA and Portability: The Committee broadly seeks feedback on ways to improve portability of health benefits under ERISA.
• Specialty Drug Coverage: What challenges do employers face in offering coverage of high-cost specialty drugs, and how can those challenges be addressed?

To read the full letter, click here.

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