Fight the 40 Interview with Micah Roberts of Public Opinion Strategies

Fight the 40 Interview with Micah Roberts of Public Opinion Strategies

Survey Finds Public Believes 40% Tax Will Bring Bad Consequences

 

To get a better idea of public attitudes toward the 40% tax on health plans, the American Benefits Council earlier this year hired a polling firm, Public Opinion Strategies (POS), to survey what people know about the tax and how they respond to various facts and claims about it. The firm conducted a nationwide survey of 1,200 registered voters from Jan. 29 to Feb. 3, and also assembled focus groups on the topic. This month we spoke with Micah Roberts, a vice president of POS, about the survey’s findings.

Roberts said the poll results should be understood in terms of the “bad environment” nationally for the Affordable Care Act, and people’s relatively gloomy sense of their own position. “Things are not going in the right direction for most people in terms of where the country’s headed,” Roberts said. “People don’t really like the health reform law, they’re feeling pretty bad about Congress, and they don’t feel too great about their economic situation. The ‘right direction/wrong track’ trend line is now into the 70s for ‘wrong track,’ and it was only 63 when we did the survey – so we’re into a downward spiral in terms of public attitudes about the direction of the country.” The focus groups also showed “a general sense of being lost on everything that’s happening with health reform,” Roberts said. “People don’t understand how it works, why it’s happening, why their premiums are skyrocketing and why their options are being limited.”

Roberts said the survey showed a low awareness of the so-called Cadillac tax. “Just 30% of people were aware of the tax, and that was actually higher among Republicans and lower among Democrats and independents. So there’s an intensity factor around this issue, and it’s centered on the negative side,” he said. “We found that 48% of voters say they would support repeal, while just 20% say they support implementing the Cadillac tax, and 38% don’t know enough to have an opinion… It was a very high number for repeal, and 40% of those said they strongly support repeal, compared to only 8% who said they strongly support implementing the tax – that was a stunning 5-to-1 differential in intensity, favoring support for repeal.”

Fearing the Worst.  The survey found that when people were presented with potential positive and negative consequences of the 40% tax, they tended to believe the worst. “We found that all the things that could be the worst outcomes – cost increases for them personally; fewer choices in the marketplace; fewer employers offering health care; more people going without health insurance – those are all among the most likely things people said would happen if the tax were implemented,” Roberts said. Conversely, they rated the more positive possible outcomes as being the least likely to happen. Roberts said 70% of respondents agreed with the statement, “The Cadillac tax should be repealed because it won’t bring in $70 billion as expected, employers will drop or reduce health benefits to avoid paying the tax, and proponents are actually wrong when they assume employers will raise workers’ taxable wages to make up for the reductions in their benefits.” And after hearing arguments for and against the 40% tax, a 2-to-1 ratio of respondents said they would be more likely to support re-electing their member of Congress if they voted to repeal the tax.

Roberts’ firm also tested how people responded to various messages about the tax. “The most effective messaging on the pro-repeal side is that the tax will force businesses to provide health plans with fewer benefits and higher deductibles. Seventy percent of people thought that was a convincing reason to repeal the tax,” Roberts said. “The second-most effective message for repeal was a statement that said, ‘175 million Americans get insurance through their jobs, and employers should not be penalized for offering health benefits they believe their employees deserve and want.’ That was a convincing reason for 76% of the people we surveyed. It speaks to the reality, which is that people who are gaining access through their employer to health care really don’t want to have that system undercut by the ACA.”

 

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More than 300 House Members Sign on to Repeal “Cadillac Tax”

For Immediate Release

July 14, 2016

 

More than 300 House Members Sign on to Repeal “Cadillac Tax”

 

Washington, D.C. – The Alliance to Fight the 40 today announced that Congressional support for repeal of the “Cadillac Tax” exceeded 300 members of the House of Representatives who have signed on to legislation to fully repeal the tax. The number of cosponsors signifies that nearly 70% of members in the House support the effort to repeal the “Cadillac Tax.”

 

“The growing number of cosponsors reflects the work of the Alliance members in their efforts to reach out to Congress to highlight the devastating effects of the ‘Cadillac Tax’ on the health coverage of working Americans,” said James A. Klein, President of the American Benefits Council. “We applaud the newest cosponsors for joining more than 300 of their colleagues to take a stand against the ‘Cadillac Tax.’  It further illustrates the overwhelming support to repeal this onerous tax.”

 

“This tax does not just affect high value plans. It will hit workers, retirees and families with ordinary coverage who have the misfortune to suffer catastrophic health events or have chronic conditions that are expensive to treat,” continued Klein. “We thank all the House members who recognize the harmful effects of this tax and are working to protect the benefits of 175 million workers.”

 

“Middle-class families depend on employer health benefits, a crucial supplement to mom and dad’s salaries, to make ends meet,” said Congressman Frank Guinta (R-NH). “A 40-percent tax on their insurance plans would be devastating to Granite Staters’ household finances, not to mention physical wellbeing. Three hundred cosponsors of legislation to permanently ax the tax is a milestone. I’m proud to have introduced the first standalone bill. One way or another, the ‘Cadillac Tax’ will meet its end.”

 

“This is one more important mile-stone on the path to an ultimate repeal of the ‘Cadillac Tax’,” said Congressman Joe Courtney (D-CT). “Passage of a two-year delay last December was an important development, but we need a permanent repeal of the 40% excise tax on health plans in order to ensure that middle-class health benefits are protected. I look forward to continuing to work with my colleagues in Congress, the Administration, and those outside experts in the future to get this over the finish line.”

 

The “Cadillac Tax” is a 40% tax on the cost of employer-sponsored health coverage that exceeds certain benefit thresholds – initially, $10,800 for self-only coverage and $29,100 for family coverage in 2020.  More than just premiums are counted when determining the “cost” of the plan.  The cost of wellness programs, on-site clinics and other plan features designed to reduce plan expenses are also included, so that ultimately virtually everyone in an employer-sponsored plan will be affected. 

 

The two bills in the House are H.R. 879 introduced by Rep. Frank Guinta (R-NH) and H.R. 2050 introduced by Rep. Joe Courtney (D-CT). There are 18 members of Congress who have signed on to both bills. Last year 90 members of the U.S. Senate voted to permanently repeal the tax.  

 

The Alliance to Fight the 40 is a broad-based coalition comprised of public and private sector employer organizations, patient advocates, businesses, unions, 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.

 

Website:  www.fightthe40.com  & Twitter: @Fightthe40

 

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“A desire to see the Cadillac tax parked”

 

 

ICYMI: Business Insurance Article, “A desire to see the Cadillac tax parked”  

  

A July 3^rd Business Insurance article, “A desire to seethe Cadillac tax parked,” highlights the need to repeal the “Cadillac Tax.”  Philia Swam, a health, wellness, benefits group manager at LafargeHolcim U.S. in Chicago explains that employers have already been instituting initiatives to improve employees’ health and reduce health plan costs.

 

Excerpts from the article:

 

If there is one change Philia Swam would like federal lawmakers to make in the 2010 health care reform law, it would be repealing the Affordable Care Act's “Cadillac Tax.”


“We made proactive changes a long time ago without facing tax implications by focusing on changing health behavior,” she said, referring to several company initiatives, such as wellness programs, intended to improve employees' health and reduce increases in health plan costs.


“For employers, the law has significantly increased their administrative burdens,” Ms. Swam said. 

 

“New taxes, fees, more reporting to the government has complicated matters,” she said. “In addition, to managing health plan costs and the health of employees and their dependents, we now have to perform so many administrative tasks that we didn't have to do before.”

 

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.

 

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ICYMI: SHRM Article on The November Election’s Impact on Health Care Reform and the 'Cadillac Tax'

ICYMI: SHRM Article on The November Election’s Impact on Health Care Reform and the 'Cadillac Tax'

 

A recent Society for Human Resource Management article, After ACA Repeal, Most Employers Would Keep Some Provisions — The November election will chart health care reform’s future, summarized a recent IFEBP panel, highlighting the impact the looming November election will have on the health care landscape — especially the 40% tax on health benefits, also known as the Cadillac Tax.  

 

Excerpts from the article:

• The future of the Affordable Care Act (ACA) will be hotly debated this election season, with a renewed push to repeal should the GOP triumph, and at least modest revisions if the Democrats keep the White House, according to speakers at the recent International Foundation of Employee Benefit Plans (IFEBP) Washington Legislative Update.

• According to a new IFEBP survey report, to avoid the 40 percent "Cadillac tax" on high-cost health plans, over a quarter (28 percent) of employers are currently working on plan design changes and an additional 38 percent intend to do so before the tax takes effect in 2020. Among these employers, the most common actions taken or planned are moving to a high-deductible health plan (43 percent), shifting costs to employees (42 percent), dropping higher cost plans (31 percent) or reducing benefits (30 percent).

• "Whether or not the Cadillac tax goes into effect, it will have left an impact on the health care landscape," said [Julie] Stich [research director at IFEBP]. "Employers are taking cost-shifting measures to avoid the tax and these efforts are shaping how Americans use and receive health care coverage."

• Both presumptive Democratic presidential nominee Hillary Clinton and presumptive Republican nominee Donald Trump have said they favor repeal of the Cadillac tax, making it possible this could be the one big change that goes through whichever party wins the White House.

 

 

TheAlliance 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.

ICYMI: New Study Highlights the Cadillac Tax’s Continued Threat to Health Coverage

ICYMI: New Study Highlights the Cadillac Tax’s Continued Threat to Health Coverage

 

A new study by the International Foundation of Employee Benefit Plans, the 2016 Employer-Sponsored Health Care: ACA's Impact, highlights the effect the “Cadillac Tax” will have on employer-sponsored health coverage.

 

Key findings include:

• 28% of employers are working to avoid the “Cadillac Tax”
• 59 % of organizations working on changes to avoid the tax are not considering halting efforts based on the two-year delay in the tax.
• Nearly three-quarters (73%) of employers have already adopted plan design changes to avoid the tax, are now trying to do so or plan to do so before it takes effect in 2020.

 

According to the report, workers are already seeing higher deductibles and increased out of pockets costs.  

 

We must repeal the “Cadillac Tax” now.

If we wait, it will be too late.

 

 

The study can be found here.

 

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.

 

 

ICYMI: CancerCare Releases Landmark Study, Highlights Financial Impact of Cancer

ICYMI: CancerCare Releases Landmark Study

Highlights Financial Impact of Cancer

Looming “Cadillac Tax” Poses Greater Burden

 

This week, Alliance to Fight the 40 member, CancerCare released its landmarkstudy to provide a comprehensive view of how people experience life with and beyond cancer. The study consisted of six surveys, each with at least 500 respondents, including one on the financial and insurance issues facing cancer patients and their families.

 

The Alliance is working with CancerCare to repeal the “Cadillac Tax,” which is a 40% tax on health benefits and threatens the employer-sponsored coverage of 175 million Americans. The study illustrates that cancer patients and their families are already under tremendous financial strain. The “Cadillac Tax” must be repealed to prevent further financial burdens for patients that may compromise their ability to pay for life saving treatment.

 

Key Findings: Financial and Insurance Issues

• Fifty-eight percent of respondents reported being distressed about their finances during treatment. Among those 25 to 54, three-quarters said cancer caused them financial hardship.

• In order to afford treatment, one-third of respondents ages 25 to 54 reported cutting back on daily essentials, such as groceries and transportation, and/or borrowed from family members and friends; 21% missed a utility bill payment; and 17% missed a rent or mortgage payment.

• A quarter reported being dissatisfied with the affordability of deductibles, and nearly 20% were dissatisfied with their poor access to genetic testing, clinical trials, and new treatments or drugs.

• When asked to tabulate their average monthly out-of-pocket spending for treatment-related expenses, non-elderly respondents reported spending $1,112, nearly twice as much as those 65 and older.

• The findings of this survey indicate that costs related to accessing medical care are important barriers to following physicians’ recommendations at the time of a cancer diagnosis.

Click here for the 2016 CancerCare Patient Access and Engagement Report

 

TheAlliance 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.

Women Targeted by the "Cadillac Tax"

As we end Teacher’s Appreciation Week and head in to Mother’s Day and Women’s Health Week, it’s time to acknowledge the importance of good health coverage that protects the millions of hard working moms, and women, everywhere.  The Affordable Care Act has helped millions to gain access to health insurance. Unfortunately, there’s a provision in the Affordable Care Act that will go in to effect in 2020 that threatens the health coverage 175 million Americans who receive health coverage through their employers.  While it is known as a “Cadillac Tax” because it’s supposed to hit “luxury” health plans, in reality, it’s a crappy mini-van tax that disproportionately targets women simply because they happen to have higher health care costs, not because they have fancy health plans.

 

To celebrate women, and protect their health coverage, tell Congress to repeal the “Cadillac Tax.”

 

To learn more: www.fightthe40.com