In Wednesday’s State of the Union address, President Obama outlined a policy agenda that will continue to make employers, especially sponsors of health insurance and retirement plans, vital to the nation’s economic recovery.
The address last night, which mentioned the recent COBRA extension, mainly tackled government initiatives aimed at creating more jobs and boosting the economy.
But on health care reform, President Obama said: “The approach we’ve taken [to health care reform] would protect every American from the worst practices of the insurance industry. It would give small businesses and uninsured Americans a chance to choose an affordable health care plan in a competitive market. It would require every insurance plan to cover preventive care.”
The president also mentioned government efforts to help more Americans save for retirement. The administration hopes to make “it easier to save for retirement by giving access to every worker a retirement account and expanding the tax credit for those who start a nest egg,” he said.
The White House recently proposed the creation of a new employer-sponsored retirement account: the “automatic workplace IRA.” The new IRAs are designed for employers that do not currently offer a retirement savings plan. Under the plans, which would be voluntary, employees would be automatically enrolled in a direct-deposit IRA unless the employee opts out. Contributions would be matched by the Saver’s Tax Credit for eligible families.
“President Obama wisely spoke about the critical need to save current jobs and create new ones,” says James Klein, president of the American Benefits Council, who believes that personal financial security equates to national financial security, which means “personal financial security for health and retirement protection begins in the workplace.”
The president’s vision “for economic recovery, health care reform and retirement security speaks to the essential role employers play as sponsors of health and retirement plans for millions of Americans,” Klein notes. “Employers want to continue doing our part as the source of health coverage and retirement income. Now it’s up to the White House and Congress to do their part to pursue sound policy on a bi-partisan basis.”
Commenting on President Obama’s address last night, Gov. Robert F. McDonnell (R-Va.) said: “Good government policy should spur economic growth, and strengthen the private sector's ability to create new jobs. We must enact policies that promote entrepreneurship and innovation, so America can better compete with the world. What government should not do is pile on more taxation, regulation, and litigation that kill jobs and hurt the middle class.”
