What the State of the Union Address Means for Employee Benefits

How Trump’s 2020 State of the Union Address could affect the employee benefits market.

On February 4, 2020, President Donald Trump gave the annual State of the Union Address.  This year, Trump’s speech covered a range of topics that could potentially impact the employee benefits industry.  Curious to learn more?  Then here is a brief overview of how the 2020 State of the Union Address could affect the employee benefits market.

  • Low Unemployment Rates

One of the things that Trump discussed in his speech is that the country’s unemployment rate continues to drop.  New data from the U.S. Bureau of Labor Statistics shows that the nationwide unemployment rate is at 3.5%.  So, what does this mean for employers?  Well, in a tight labor market, employers will have trouble recruiting and retaining top talent.  To remain competitive, companies may have to bump up their employee benefits packages to appeal to candidates and existing staff alike.

  • Private Health Care

Trump also shared his support for employer-funded private health care rather than a government-sponsored health care system.  This means that health care benefits will continue to remain a top priority for employees across all industries.  Trump also stated that his administration would continue to pursue greater transparency for the health care industry with the hope that this will lower the cost of health care services.

  • Paid Family Leave

Addressing Congress, Trump argued for the passing of the Advancing Support for Working Families Act.  Should this bill pass, it would give new parents in the federal workforce access to paid family leave.  Trump noted that, if passed, this law should serve as a model for the rest of the country to expand paid leave to new parents.

  • Prescription Drug Cost Reform

Trump’s administration has focused on lowering the cost of prescription drugs.  In his speech, Trump announced that 2019 marked the first time in 51 years that the cost of prescription drugs decreased.  Should this trend continue, then this could make employee health care costs more affordable for employers.

  • Low Unemployment Rates

One of the things that Trump discussed in his speech is that the country’s unemployment rate continues to drop.  New data from the U.S. Bureau of Labor Statistics shows that the nationwide unemployment rate is at 3.5%.  So, what does this mean for employers?  Well, in a tight labor market, employers will have trouble recruiting and retaining top talent.  To remain competitive, companies may have to bump up their employee benefits packages to appeal to candidates and existing staff alike.

These are some of the ways that the topics discussed in Trump’s 2020 State of the Union Address could affect the employee benefits market.  Want to stay up to date on all the latest employee benefits news?  If so, then contact the experts at CIA Insurance and Risk Management for the answers you need today.

Post written by Janelle Morck, Vice President | Employee Benefits Risk Management (ERM)

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