ICYMI: Members of Congress Join Forces with Alliance to Fight the 40 in Calling for “Cadillac Tax” Repeal

For Immediate Release
December 3, 2015
Contact: Tara Bradshaw

ICYMI:
Members of Congress Join Forces with Alliance to Fight the 40 in Calling for “Cadillac Tax” Repeal

Washington, D.C. – On Wednesday, Republican and Democratic Members of the Senate and House were joined by representatives of large and small businesses, a national patient organization, the 11^th largest public retirement system, and laborers at a media event to call for the repeal of the 40% tax on employee health benefits, more commonly known as the “Cadillac Tax” before Congress adjourns at the end of the month.

All urged a repeal of the Cadillac Tax in order to reduce the negative impact it will have on the 175 million Americans that rely on employer-sponsored health coverage, including workers, families, retirees and those living with chronic illnesses.

Key coverage of the event includes:

The Hill: The efforts to ditch the tax, which House Democrats, including Courtney, have opposed since the creation of ObamaCare, has been lifted by a campaign called the Alliance to Fight the 40. That coalition [has] warned that millions of middle-class workers will see the effects of the tax, which has yet to be implemented, as soon as contract negotiations begin this year. The tax officially goes into effect in 2018.

Bloomberg BNA: … paths such as legislation to extend various tax breaks—known as the “tax extenders” bill—will need to be explored, Heller said during an event hosted by the Alliance to Fight the 40, a group opposing the Cadillac tax. Heller and Sen. Martin Heinrich (D-N.M.), who also spoke at the event, introduced the Middle Class Health Benefits Tax Repeal Act of 2015 in September (S. 2045) (181 DTR G-1, 9/18/15). Rep. Frank Guinta (R-N.H.) said during the event that he thinks including a repeal of the Cadillac tax in the tax extenders package “makes the most sense.” Guinta introduced the Ax the Tax on Middle Class Americans' Health Plans Act (H.R. 879) in February.

Inside Health Policy: Courtney [spoke] at a press conference organized by the “Alliance to Fight the 40,” a cross-industry coalition to end the so-called “Cadillac tax” before it takes effect in 2018 … Business groups say employers are already cutting back employee benefits and worry about taking funds out of retiree benefits to pay for the tax. The Alliance to Fight the 40 points out that while the “Cadillac tax” was expected to hit only 3 percent of plans in 2018, other projections show it could hit 19 percent of plans in 2018 and nearly half of plans in 2022.

The Alliance to Fight the 40 is a broad based coalition comprised of public and private sector employer organizations, consumer groups, patient advocates, unions, health care companies, businesses and other stakeholders that support employer-sponsored health coverage. This coverage is the backbone of our health care system and protects over 175 million Americans across the United States. The Alliance seeks to repeal the 40% tax on employee health benefits to ensure that employer-sponsored coverage remains an effective and affordable option for working Americans and their families.

For more information on the 40% Tax on Health Benefits, visit our website at www.fightthe40.com or follow us on Twitter @Fightthe40.

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