House Examines Cost of Employer-Sponsored Health Insurance

The House Education and Workforce Subcommittee on Health, Employment, Labor, and Pensions held a hearing on the rising cost of health care coverage to workers. Entitled “A Healthy Workforce: Expanding Access and Affordability in Employer-Sponsored Health Care,” the hearing highlighted how growing health insurance premiums are straining employers—especially small businesses—and explored policy solutions to help keep coverage both accessible and financially sustainable. 

Commitment to ERISA: Subcommittee Chairman Rep. Rick Allen (R-GA) underscored the subcommittee’s bipartisan commitment to maintaining Employee Retirement Income Security Act (ERISA) preemption, which for over 50 years has allowed self-insured plans to operate under a uniform federal standard rather than a patchwork of state laws. He pledged to continue working with the Department of Labor to safeguard that regulatory stability.

• HRPA provided Committee members with its Advancing the American Workforce series, which highlights the critical role of employer-sponsored health benefits and underscores employers’ commitment to offering high-quality, affordable coverage to support a healthy and productive workforce. 

Chairman Allen opened the session by emphasizing the essential role of employer-sponsored health insurance in the U.S. health system. Quoting data from the Kaiser Family Foundation, Allen noted that family premiums have risen by 7% annually for the past two years. 

Options for cost containment: Lawmakers discussed tools such as stop-loss insurance and reinsurance, which allow employers—particularly those that self-fund their plans—to protect against high-cost claims and better manage financial risk.

• The Self-Insurance Protection Act, reintroduced by Rep. Robert Onder (R-MO), aims to clarify that self-funded health plans using reinsurance should be classified as self-insured, preserving their exemption from certain state insurance laws under ERISA.

• The legislation would also prevent federal agencies from redefining stop-loss insurance as traditional health insurance—something employers argue would undermine the affordability and flexibility of their plans. 

Looking ahead: In the 115th Congress, the Self-Insurance Protection Act enjoyed broad Republican support, passing the House with a commanding 400-16 vote, though it stalled in the Senate. With a Republican trifecta and a coordinated effort to pursue the president’s policy objectives, combined with a renewed push to lower costs and expand access, lawmakers are optimistic that the bill could gain new momentum and see progress this congressional session.