Rep. Kline publishes his support for ERISA (SIIA Weekly Washington Report)
Rep. John Kline (R-MN), ranking member of the House Subcommittee on Health, Employment, Labor & Pensions (HELP) published an unexpected and welcome summary of his views on ERISA last week, largely reflecting SIIA positions that have been communicated to him and his staff by SIIA lobbyists. Rep. Kline’s article is of such importance to SIIA’s efforts in Washington that it will comprise this week’s entire Washington Report.
ERISA: benefits for 160 million: Rep. Kline’s article characterized ERISA as allowing and encouraging “employers to provide high quality, affordable benefits voluntarily to more than 160 million Americans.” It appeared in The Hill, an influential newsletter that is widely read by members of Congress and their staffs. The article summarized the importance of the health care debate: “Near the top of the list of most pressing matters for many Americans is access to affordable, quality healthcare. We ultimately must choose between a system that enables patients and doctors to make decisions about care and the undesirable alternative of a government-run system that provides limited – if any – choice for individuals.”
Preemption of state and local laws is ERISA key: Rep. Kline’s article states: “ERISA preemption helps promote the uniform administration of benefits…and lowers the cost of providing coverage. This is critical for employers who offer health benefits to employees, retirees and their families across state lines. In fact, it is arguably the sole reason for our success in providing healthcare for the more than 160 million Americans who obtain healthcare coverage from their employers.
Rep. Kline describes his role: “Because of my position as ranking member (HELP subcommittee) I often am cast in the role of defender of ERISA.” He writes of ERISA threats by members of Congress: “Unfortunately, there have been repeated attempts in my subcommittee to begin to unravel ERISA one thread at a time – starting with state preemption. This is absolutely the wrong approach, and it could lead to significant reduction or elimination of coverage for those who rely on ERISA in its current form.”
Additional threatened erosion of ERISA: Rep. Kline continues: “Other efforts have focused on adding coverage mandates within ERISA. In general, these well-intentioned mandates increase the cost of providing healthcare coverage and decrease flexibility in designing healthcare benefits. This has the potential to pose serious problems to the ERISA-based structure that is designed to encourage the private sector to provide coverage voluntarily.”
Rep. Kline calls for vigilance: “If we are to increase efficiency and preserve coverage for millions of Americans while moving toward comprehensive reform, members of Congress must be vigilant in our efforts to resist incremental changes. Restrictive rules and administrative bureaucracy increase the cost of benefits, making healthcare less affordable for employees, retirees and their dependents, which could ultimately decrease access to healthcare.”
