This election day, you might be heading to the polls or have voted already (I’m looking forward to getting fewer random texts and mailers, that’s for sure!). Regardless of the outcome, the next administration will likely impact many areas, including employee benefits. Here’s a roundup of our election watchlist for benefits and where to find more information as issues unfold. But first, a quick background on how the three branches of government impact federal laws and regulations.
Federal Election Results
Election results have a trickle-down effect that would impact all levels of the federal government. A new presidential administration sets the policies and priorities at a high level. Think of a presidential campaign proposal. First, elected house representatives and senators in Congress need to pass a law that enacts such a proposal. Next, federal agencies make regulations about the law. Then those regulations could be challenged in court. This process can play out over several years. Here’s more background on how the three branches impact benefit plans.
Executive Branch
The executive branch (the presidential administration) impacts regulatory processes in several ways.
- New administrations typically impose a regulatory freeze to review regulations in their early stages. Regulations can be withdrawn, essentially reversing what the previous administration had done.
- With executive orders, the White House can direct federal agencies to work on certain initiatives (e.g., health care price transparency, retirement security).
- The president selects nominees for federal agencies. Congress confirms or rejects the president’s nominees providing checks and balances. Vacancies in federal agencies can slow regulatory progress or lead to more sub-regulatory guidance, like FAQs.
- Agency enforcement priorities could fluctuate. For example, the Biden administration prioritized mental health parity enforcement.
[Related: MHPAEA Final Rules Amending NQTL Standard]
Employers and plan sponsors should monitor such regulatory changes and work with their service providers on compliance issues. As a member service, the International Foundation tracks regulations and sub-regulatory government guidance.
Legislative Branch
The legislative branch of the government (Congress) has several benefit-related items pending before the end of 2024 when the bills expire. Key topics involve technical corrections to the SECURE 2.0 Act, simplifying ACA reporting and extending telehealth coverage before reaching the deductible for participants in high-deductible health plans. (Find more by visiting the Foundation’s U.S. Legislative Tracker.)
Judicial Branch
The judicial branch of the government is involved whenregulations affecting health and retirement plans could be challenged in federal court. Presidential administrations decide on appealing individual cases to the Supreme Court. A new administration may choose to not support certain litigation efforts from the predecessor. For example, a new administration might ask the court to dismiss a case that is in progress.
Benefits Topics Watchlist
Several major benefits-related issues could be impacted by the election. Here’s what the Foundation will be paying close attention to over the next several months.
Health Benefits
There is bipartisan support behind some proposals to lower prescription drug costs and increase transparency for pharmacy benefit managers (PBMs) as well as require health plans to cover in vitro fertilization (IVF) treatments. According to the International Foundation of Employee Benefit Plans’ Employee Benefits Survey: 2024 Report, 42% of U.S. organizations currently offer fertility benefits. Access additional information and health care resources.
[Related: Organizations Adding More Fertility and Adoption Support]
Paid Family Medical Leave and Caregiving
While it’s unclear whether there is congressional support to establish a national paid family leave program, bipartisan efforts are underway to make a paid leave temporary tax benefit expiring in 2025 permanent. Enacted in 2017 as a pilot program, the tax credit has been renewed twice. Find out what types of paid family leave other organizations offer in the Foundation’s Paid Leave in the Workplace: 2024 Survey Report. Congress is also exploring ways to establish consistency between state mandates that would make it easier for employers to comply with varying state laws. Another proposal aims at allowing employees unpaid leave to care for a wider range of family members with medical needs.
[Related: Paid Family and Medical Leave Legislative Developments]
Employer-Assisted Childcare
Legislative proposals to boost existing tax credits to employers providing child care benefits to workers have bipartisan support. The Foundation’s Employee Benefits Survey: 2024 Report found that 6% of U.S. organizations currently offer on-site or near-site child care.
Retirement Security
Election results could impact short-term market volatility. Employers should encourage long-term investors to stay the course.
DOL and IRS are the agencies in charge of implementing SECURE 2.0 regulations and guidance. Plan sponsors and service providers have requested more guidance on certain provisions like Retirement Savings Lost and Found and the student loan payment match. For additional information and resources, check out the SECURE Act 2.0 Toolkit.
PBGC is continuing to run the Special Financial Assistance (SFA) program for underfunded multiemployer plans, which stakeholders are closely watching. A nominee for the next PBGC director hasn’t been confirmed yet. View a listing of the most recent multiemployer pension reform news and resources.
Key Points for Plan Sponsors to Watch
State Policy Issues
At the state level, certain policy issues that impact employers and the workplace are put on the ballot. It’s challenging for multistate employers to keep up with the patchwork of state laws.
- Voters in Alaska, Missouri and Nebraska will vote on paid sick leave measures.
- Washington voters will decide whether workers can opt out of the state’s long-term care insurance program.
- Voters in Florida, Nebraska, North Dakota and South Dakota will be voting on marijuana legalization ballot measures.
Tax Measures
Regardless of the results, tax measures will be a big focus because temporary tax reform provisions from 2017 are set to expire at the end of 2025.
The Foundation will be closely monitoring these issues and updating our members and the benefits community through the Word on Benefits blog, Today’s Headlines, and legislative and regulatory updates.
Developed by International Foundation Information Center staff. This does not constitute legal advice. Please consult your plan professionals for legal advice.