Chair Cassidy, Scott, Colleagues Introduce Bill to Support Employees’ Health Care

WASHINGTON - U.S. Senators Bill Cassidy, M.D. (R-LA), chair of the Senate Health, Education, Labor and Pensions (HELP) Committee, Tim Scott (R-SC), Roger Marshall, M.D. (R-KS), and Thom Tillis (R-NC) introduced the Strengthening Benefit Plans Act of 2025. This legislation would allow for overfunded 401(h) retiree pension accounts to be transferred to help pay for active healthcare programs. A 401(h) plan is an employer-sponsored fund for post-retirement medical benefits. By funding these benefits with previously paid contributions, employers would avoid paying additional costs out of pocket.

"Allowing businesses to reinvest in their employees' health care strengthens the nation's economy," said Dr. Cassidy. "This commonsense legislation allows companies to transfer excess funds from overfunded 401(h) accounts to support their employees' health care needs."

"Allowing for surplus dollars to be shifted to active healthcare plans is a commonsense approach that benefits both businesses and employees," said Senator Scott. "This targeted solution allows for employers to redirect funds to better serve those who make their businesses work."

"The Strengthening Benefit Plans Act of 2025 is good for workers, and it's good for businesses," said Senator Marshall. "It will allow employers to reinvest in employee health plans, strengthening and expanding benefits for workers. That's what I call commonsense policy."

"This legislation gives hard-working employees a stronger financial future, retirement security, and better health coverage by allowing employers to reinvest surplus benefit assets into the current workforce," said Senator Tillis. "This is a smart, commonsense solution that protects retiree obligations while benefiting today's workforce."

Read the full bill text here.

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