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The NAM called on the Senate Health, Education, Labor and Pensions Committee this week to reduce manufacturers’ health care costs, ahead of Wednesday’s hearing on ways to make health care affordable.

What’s going on: Employer-sponsored insurance is the bedrock of the United States’ health care system, covering more than 160 million people across many industries. However, the cost of ESI is one of manufacturers’ top concerns, as reported in the NAM Q3 2025 Manufacturers’ Outlook Survey.

• “Manufacturers are committed to providing health insurance to their workers,” the NAM told the committee, “but substantive reforms are needed to realign our health care system to put patients first and reduce costs for companies, workers and their families.”

What Congress must do: “Manufacturers are increasingly concerned with the rising cost of health care” and suggest the following “effective ways to lower health care costs without negative downstream effects”:

• Reform pharmacy benefit managers: The NAM has long advocated for increased transparency, the delinking of PBM compensation from the list price of medicine and full rebate passthrough to plans and their beneficiaries in the commercial market. These reforms would crack down on PBMs’ shady business practices and lower health care costs for manufacturers.
• Reform the 340B program: Hospitals and other covered entities outside the original intent of the program have taken advantage of the program to increase their profits, driving up the costs of ESI. An April 2025 report published by the committee identified key issues within the 340B program that Congress must address.
• Increase limits and expand eligibility for Health Savings Accounts: HSAs provide greater flexibility and control over health care costs for manufacturing workers. An increase in contribution limits and greater eligibility would give more people access to HSAs and empower them to contribute more tax-free dollars for medical expenses.
• Improve data transparency and accessibility: Employers need access to complete, user-friendly data to make informed choices about their health plan operations. Increasing transparency and making data more usable by plan sponsors will enable informed decision-making and put better data in the hands of beneficiaries.
• Strengthen ERISA and protect its federal preemption: The health care system’s high level of complexity and bureaucracy has created obstacles for manufacturers. Congress should support improvements to the system, such as the creation of standardized definitions and methods for measuring quality. Additionally, ERISA’s federal preemption, which ensures multistate employers aren’t forced to comply with a patchwork of state-based rules, must be maintained.

The last word: “Our industry appreciates the committee’s timely consideration of solutions…to ensure manufacturers can continue to offer health insurance to their workers, and their families, who work hard every day to power the American economy,” the NAM concluded.