Congress is finally getting back to work after the government shutdown, and it’s critical that lawmakers act on legislation to address the most significant financial burden facing West Virginia families: health care. Both parties agree this issue demands attention. With health care once again at the forefront of the national conversation, and with leaders searching for common ground, Congress should start by passing the Strengthening Benefits Plan Act of 2025.
Few Americans realize that billions of hard-earned dollars are currently locked away in overfunded 401(h) accounts, sitting idle. These accounts, many of which are overfunded by employers, hold surplus funds that can’t be used for other purposes due to outdated legal restrictions. As a result, money that could be helping employees remains untapped.
The Strengthening Benefits Plan Act would fix this problem. The legislation allows companies to reinvest these unused funds to support employee health care benefits and reduce premiums. That means no wasteful or unaccountable spending, no executive bonuses – just direct improvements to healthcare for hard-working employees.
Importantly, this legislation includes strong safeguards to protect workers. It requires pension plans to be fully funded at 110% before any transfer takes place, ensures that assets are held in a trust, and guarantees that retirement benefits remain vested and secure.
Even better, this proposal wouldn’t raise federal expenses but instead raise revenue – a concrete step toward reducing our nation’s deficit. Employers would forego additional tax deductions they might otherwise claim, since the original deduction for the lumps of money in the surplus had already been applied. At a time when Washington talks endlessly about raising revenue without increasing taxes, this bill represents a rare opportunity to do exactly that.
This is the kind of practical, fiscally responsible solution that taxpayers want: a common-sense path to strengthening healthcare and reducing waste while addressing the deficit.
The Strengthening Benefits Plan Act is an ideal example of how to unleash private-sector innovation through reasonable flexibility. It’s simple, pro-growth, and responsible. The only obstacle is the outdated red tape that has prevent this change from happening sooner.
Here in West Virginia, residents have been clear about what they want – quality and affordable healthcare and efficient, accountable government. They’ve long called for an end to unnecessary regulations that stifle progress. This legislation does both. West Virginians are counting on our leaders in Washington including Senator Shelley Moore Capito, who has been a champion for responsible, limited government – to push this critical bill forward.
Erikka Storch is a former member of the West Virginia Legislature who served as Chairman of the House Committee on Pensions and Retirement. Additionally, she served as a trustee of multiple union pension and health and welfare funds.
