SHRM Responds to Senate Finance RFI to Modernize Employer Benefits

SHRM urged the Senate Finance Committee to modernize dependent care benefits and strengthen employer-sponsored health coverage in comments responding to the Committee’s Health Coverage That Works for Everyone request for information.

The recommendations focus on practical changes that preserve employer flexibility while reducing costs and administrative burden.

As part of this effort, SHRM is exploring potential legislative approaches to modernize dependent care flexible spending account to better reflect the evolving caregiving needs of today's workforce. These concepts focus on providing greater flexibility for employees managing dependent care expenses while preserving employer choice and maintaining existing program safeguards.

SHRM recognizes that employees increasingly face complex caregiving responsibilities, including caring for children and aging family members. Modernizing existing benefit structures could help employers better support working families while ensuring these programs remain practical and accessible.

SHRM also addressed four employer health coverage priorities.

First, SHRM called for greater transparency from third-party administrators and other vendors so employers can access claims and cost data, understand fees and potential conflicts of interest, audit plan performance, and compare vendors without assuming reporting obligations for information already controlled by insurers or administrators.

Second, SHRM urged Congress to preserve ERISA’s nationally consistent framework for self-insured employer plans. Federal preemption allows employers operating across jurisdictions to administer benefits under a common framework rather than navigating differing state requirements.

Third, SHRM supported claims-administration reforms that reduce unnecessary delays, opaque processes, and improper denials while preserving reasonable utilization-management tools. New requirements should clearly distinguish the responsibilities of employers, insurers, and third-party administrators and avoid duplicating functions performed by specialized administrators.

Finally, SHRM supported voluntary, interoperable enrollment approaches that improve data exchange across benefits, payroll, and enrollment systems. Rather than prescribe a single federal platform, policymakers should involve employers, HR professionals, vendors, and other stakeholders in developing standards that complement existing systems and reduce administrative burden.

Together, the recommendations are intended to strengthen employer-provided benefits while preserving flexibility, improving administration, and supporting workers and families.

Read SHRM’s full response.