Lori Chavez-DeRemer testifying at a House Education and the Workforce Committee hearing in Washington. Credit: House Education and the Workforce Committee
U.S. Labor Secretary Lori Chavez-DeRemer seems to be warm to the idea of continuing to give employers' self-insured health plans freedom from state benefits regulations but leery about discussing the details.
Chavez-DeRemer — a former House member who was confirmed to the Labor secretary post in March — took a question about self-insured health plans and the Employee Retirement Income Security Act last week, during a House Education and the Workforce Committee hearing on Labor Department priorities.
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Questions during the confirmation hearings focused mainly on topics other than health benefits, and the same was true during last week's hearing. But Rep. Robert Onder Jr., R-Mo., a committee member who is both a physician and attorney, asked about ERISA preemption.
"Will the Department of Labor under your leadership remain committed to the traditional ERISA self-insurance system and ERISA preemption, which has provided health insurance for so many employers and employees throughout this country?" Onder asked.
"It's certainly important," Chavez-DeRemer told Onder. "I am committed to working with your office on any specifics that you need from me. What we are doing now under ERISA is in compliance, and we will commit to staying that way.
The backdrop: Traditionally, the ERISA preemption provision has shielded large, self-insured plans from state benefits rules. Another federal law has left regulation of the business of insurance to the states.
Groups like the ERISA Industry Committee and the American Benefits Council have been working to defend ERISA preemption.
In recent years, some health care providers have been trying to find ways to get around ERISA preemption and let states curb pharmacy benefits managers and other types of health care cost managers, such as dental plans and vision care plans.
Related: Congress could let states poke holes in ERISA preemption to regulate PBMs
At the hearing, Chavez-DeRemer said she sees PBM regulation as a priority.
Hearing details: Onder also asked Chavez-DeRemer about the idea of preserving private health insurance and about efforts to protect the sale of short-term health insurance.
Chavez-DeRemer said the House Education and the Workforce Committee has often discussed topics such as PBMs and association health plans — groups that let employers team up to buy health coverage — in the context of wanting to help employers offer the best plans available.
"The goal of the administration is to lower the cost of health care and ensure that we're providing that benefit to employees," Chavez-DeRemer said. "Working with private businesses and public entities, we want to make sure that we're offering the best health care plans."
In the past, some administrations have tried to restrict sales of short-term health insurance to avoid letting access to low-cost, medically underwritten coverage destabilize the major medical insurance market. In the major medical market, issuers issuers cannot protect themselves from high-cost patients by considering applicants' or insureds' health when selling or pricing coverage.
Chavez-DeRemer said she could not answer Onder's question about short-term health insurance thoroughly because the Labor Department is drafting short-term health insurance regulations.
"As we go through rulemaking, I will look to Congress and our stakeholders to determine the specifics," Chavez-DeRemer said. "But I can't really comment further, as it is still in rulemaking."
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