Mercer CEO Talks Benefits Policy in Visit to Capitol Hill
With health care and retirement issues at the top of Congress’ agenda, Mercer CEO and President Martine Ferland thanked key lawmakers for recent progress and suggested further improvements to bolster the employer-based benefits system during a series of April 5 visits on Capitol Hill.
Ferland expressed appreciation to key members of Congress for passing legislation in March that revived and extended COVID-19 telehealth relief through the end of this year. That relief allows health savings account (HSA)-qualifying high-deductible health plans (HDHPs) to cover telehealth and other remote care services on a predeductible basis without jeopardizing an individual’s eligibility to make or receive HSA contributions.
While sharing extensive Mercer survey data showing how the pandemic has accelerated the use of telehealth and expanded new care models – such as mental health care – Ferland told lawmakers that “there’s no turning back the clock” and pressed for additional reforms to encourage wider use of telehealth. These include removing state barriers and making it easier for employers to offer more robust telehealth benefits, as well as rejecting proposals to require payment parity for a telehealth visit with an in-person visit.
The price of prescription drugs was a key discussion topic, and Ferland noted that Mercer data demonstrates that drug costs, especially for specialty drugs, is the number one driver of cost increases in employer-provided coverage. As Congress debates drug-pricing reforms, she stressed that any legislation allowing Medicare to negotiate prices or to cap the program’s drug costs at no more than general inflation needs to avoid shifting costs to private sector payers.
Another critical component of improving health care affordability and access is to continue the drive for greater price and quality transparency, Ferland told lawmakers. Mercer continues to be active in helping clients and policymakers improve transparency and implement new reporting requirements, she added, noting that there is much more work to be done in standardizing quality metrics for medical care and drugs that link to price transparency in a consumer-friendly way.
Mercer CEO and President Martine Ferland discusses benefits policy issues with US Rep. Randy Feenstra (IA).
Retirement issues were also top of mind with overwhelming House approval just days before of major bipartisan “SECURE 2.0” legislation. Ferland commended lawmakers in person and in a March 28 letter, calling out several helpful provisions for plan sponsors and participants including encouraging student loan match programs in 401(k) plans, creating a retirement account “lost and found” database for former employees, and expanding plan coverage for part-time workers. She also thanked key senators for their retirement policy work as that chamber develops its own SECURE 2.0 package.
At a separate meeting in Mercer’s Washington office, Ferland led a roundtable discussion with representatives from several benefits-focused trade groups with whom Mercer partners to advocate for sound retirement, healthcare and workplace policies. Attendees exchanged views on their organization’s biggest policy challenges and opportunities and how best to address them. As this work continues, it was agreed that continued progress depends on employers remaining engaged with lawmakers and making their voice heard in Washington.