The Alliance to Fight the 40|Don’t Tax My Health Care, a broad-based coalition committed to repealing the 40 percent tax on employer-sponsored health benefits – the so-called “Cadillac Tax” – applauds Rep. Joe Courtney (D-CT), Rep. Mike Kelly (R-PA), Rep. Suzan DelBene (D-WA), and Rep. Elise Stefanik (R-NY), for their bipartisan reintroduction of legislation to protect the health benefits of workers by repealing the onerous 40 percent “Cadillac Tax.”
Today, Rep. Joe Courtney, Rep. Mike Kelly, Rep. Suzan DelBene, and Rep. Elise Stefanik, introduced H.R. 748, “The Middle Class Health Benefits Tax Repeal Act of 2019,” a bill to amend the Internal Revenue Code of 1986 to repeal the excise tax on high cost employer-sponsored health coverage hrtech news.
“Thank you, Reps. Courtney, Kelly, DelBene, and Stefanik for fighting to protect the health care coverage that works for working Americans,” said James A. Klein, president of the American Benefits Council. “The ‘Cadillac Tax’ isn’t about fancy cars or fancy health plans. It’s an unfair tax that targets older, sicker workers, women and families. This tax is driving up costs that working Americans cannot afford.”
“The American people have made it clear that they want Congress to address the rising cost of health care. Out of pocket costs are unaffordable for growing numbers of families, even those who have insurance. If the 40 percent excise tax goes into effect, we know this affordability crisis will dramatically worsen. Actuarial experts have repeatedly warned that this tax will disproportionately and unfairly impact older workers, women, and working families in expensive geographic areas. My legislation to repeal the 40 percent tax has wide and unified support from a range of stakeholders, patient groups, employers, and labor organizations. It’s my belief that the legislation will receive the same broad support in this Congress, and that we will scrap the Cadillac Tax once and for all hrtech.”
~ Rep. Joe Courtney (D-CT)
“By taxing the benefits that employers generously offer their employees to help keep them healthy and financially secure, the Cadillac Tax needlessly cuts into ever-tightening family budgets while making health care less accessible. As we know it, the employer-sponsored health care system is stable, efficient, and effective in covering more than half of all Americans. Employers are on the cutting edge of innovation, leveraging new technologies and systems to reduce health care costs and produce better outcomes. The Cadillac Tax threatens this time-tested system as it would lead many employers to forgo investments in the health care solutions of tomorrow. Now is the time to fully and permanently repeal the Cadillac Tax.”
~Rep. Mike Kelly (R-PA)
“The Cadillac Tax hits working families due to factors beyond their control such as age, geography, or job occupation. Simply put, it’s an unfair tax against families who get their health insurance through their employers. Repealing the Cadillac Tax in bipartisan fashion would be a win for families in my district that depend on high quality, affordable health coverage.”
~ Rep. Suzan DelBene (D-WA)
“I am a staunch opponent of unnecessary taxes and a staunch supporter of employer-sponsored health insurance coverage. My constituents in the North Country already pay far too much for their health insurance – the looming Cadillac Tax forces them to pay even more out of pocket costs. Repealing the Cadillac Tax is one commonsense fix to the Affordable Care Act, and I’m proud to join my colleagues in ending it once and for all in a bipartisan fashion. There is absolutely no plausible reason this oppressive tax was ever a part of the law in the first place.”
~ Rep. Elise Stefanik (R-NY)
Background. The “Cadillac Tax” is a 40 percent tax on the cost of employer-provided health coverage that exceeds certain premium benefit thresholds – initially, projected to be $11,100 for self-only coverage and $29,750 for family coverage in 2020. More than just health plan premiums are counted when determining the “cost” of the plan. The cost of wellness programs, on-site clinics and other plan features designed to keep the workforce healthy and help reduce plan expenses are also included. The tax is designed to hit more plans over time so that virtually everyone in an employer-provided plan, including low income workers and families with chronic or catastrophic health conditions, will ultimately be affected.
Bipartisan Support. Repealing the “Cadillac Tax” has broad bipartisan support in Congress. In the previous Congressional session (2017-2018), over 300 members in the House of Representatives — 168 Democrats and 137 Republicans – along with 33 bipartisan Senators cosponsored repeal legislation.
Voter Support. Findings from an election night poll on key issues in the 2018 Midterm Election, conducted by renowned pollster Frank Luntz, highlights that 81 percent of voters oppose taxing employer-provided health care coverage. They believe working families are already stretched too thin and can’t afford the higher costs being driven by the “Cadillac Tax.”
Click here to read statements from members of the Alliance to Fight the 40.
The Alliance to Fight the 40|Don’t Tax My Health Care is a broad-based coalition comprised of businesses, patient advocates, employer organizations, unions, local governments, health care companies, consumer groups and other stakeholders that support employer-provided health coverage. This coverage is the backbone of our health care system and protects more than 181 million Americans. The Alliance seeks to repeal the 40 percent “Cadillac Tax” on health benefits and to prevent increased income taxes on workers, families and retirees who rely on employer-provided health coverage. The Alliance is committed to ensuring that employer-provided coverage remains an effective and affordable option for working Americans and their families.