What the Biden Administration May Imply for Well being and Social Advantages – InsuranceNewsNet


While the possibility of a public health option is currently out of the question, some things could change in the individual health insurance market under a Biden administration, according to the President of the American Benefits Council.

Jim Klein was one of several speakers who gave their outlook on the impact of the 2020 election on employer-sponsored benefits. His presentation was part of a webinar by the Employee Benefits Research Institute.

Biden’s government wants to build on affordable care law, Klein said, which is the subject of a case before the Supreme Court. The court is expected to rule in 2021 in the California v Texas case, which seeks to declare the ACA unconstitutional after Congress removed the individual mandate penalty from law.

At least three possible outcomes could emerge from the Supreme Court decision, Klein said. If the law is followed, administration is expected to build on and expand the ACA. If the ACA is crushed, Democrats expect them to push for an expanded government role in health care. If the appellate court’s decision is upheld, it will have implications for the employer’s mandates and reporting.

The Biden administration wants to make some changes to the ACA, Klein said, including dismantling the firewall for those who are no longer receiving grants. Biden also wants to make it easier for consumers to get affordable coverage by tying subsidies to the Gold Plan instead of the Silver Plan.


Regarding the retirement pensions agenda, Klein predicted that the following issues would be up for discussion in the new administration and in the new Congress:

  • Mandatory automatic registration and escalation.
  • Reduce the threshold for part-time workers to participate in a workplace plan.
  • Expand your savings.
  • Larger catch-up contributions for employees aged 60 and over.
  • Appropriate contributions for student loan repayment.
  • For the minimum required distribution, increase the age to 75 years.
  • Reform of the financing of a single employer.
  • Reform of the plan for multiple employers.

The exclusion of employer contributions for health insurance premiums and medical care is set to cost the federal government $ 3.1 trillion between 2020 and 2029, Klein said. The exclusion from employer-sponsored contributions and income from pension plans is expected to cost the federal government $ 2.1 trillion over the same period.

“What are we getting as a nation for this huge investment?” he said. “For every $ 1 lost in revenue, you’ll spend $ 4.45 on health care and employee benefits. And plans pay out $ 7.15 for every $ 1 lost in revenue. It’s big business for the federal government. Policy makers need to take this into account when deciding whether to choose a more government-centered or a more individual-centered approach to health care. “

Susan Rupe is the Editor-in-Chief for InsuranceNewsNet. Previously, she was communications director for an insurance agents association and an award-winning newspaper reporter and editor. Contact her at Susan.Rupe@innfeedback.com. Follow her on Twitter @INNsusan.

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