Bipartisan Lawmakers Urge Congress to Fight the 40% Tax on Employee Benefits

Bipartisan Lawmakers Urge Congress 

to Fight the 40% Tax on Employee Benefits

On December 2, bipartisan lawmakers of the Senate and House and representatives of large and small businesses, a national patient organization, and the 11^th largest public retirement system joined the Alliance to Fight the 40 at a media event to raise awareness on the need to repeal the 40% tax on employee benefits.

Just one day after the event, the Senate voted 90-10 to approve an amendment to fully repeal the tax. This overwhelming support is coupled with 283 cosponsors on House legislation to repeal the tax, which is just 7 shy of reaching the 290 members needed for a veto proof majority.

Sen. Dean Heller (R-NV) argued the tax would cause Americans that rely on employer-sponsored health plans “reduced benefits, increased premiums and higher deductibles,” and Sen. Martin Heinrich echoed these sentiments, adding that the Cadillac Tax means “less access to primary care.”

Rep. Frank Guinta (R-NH) made note that “the White House recognizes the level of bipartisan support” to repeal the Cadillac Tax. He added, “Now it’s time to act!”

Rep. Joe Courtney (D-CT) asked for a full repeal of the Cadillac Tax stating, “We can join together to…keep health insurance affordable for every working family.” Along with Sen. Sherrod Brown, the four lawmakers have taken on a large role in the effort to repeal the tax, sending a letter to the president requesting a discussion about the negative impact the Cadillac Tax will have on workers that rely on employer-sponsored healthcare.

These and other leaders are working to ensure that American workers, retirees, and patients with chronic illnesses are all able to afford their healthcare without worrying about the Cadillac Tax raising costs. Now is the time to take action and fight to repeal this tax altogether. 

Alliance to Fight the 40 Statement on Bipartisan Vote to Repeal the “Cadillac Tax”

For Immediate Release
December 3, 2015
Contact: Tara Bradshaw (202) 467-4603

Alliance to Fight the 40 Statement on Bipartisan Vote to Repeal the “Cadillac Tax”

Washington, D.C. – The Alliance to Fight the 40 issued the following statement from James A. Klein, President of the American Benefits Council, following a 90-10 vote in favor of an amendment to permanently repeal the 40% tax on employee health benefits:

“We applaud the bi-partisan Senate leadership for making possible this important vote and the overwhelming number of Senators who voted to protect health coverage for 175 million Americans by supporting permanent repeal of the 40% 'Cadillac' tax. This tax is already proving to be a burden on workers, families, retirees and those living with chronic illnesses. We will continue working on this very critical issue until full repeal is enacted. Today’s vote is another strong bi-partisan recognition that this tax must be repealed to preserve employer-sponsored health coverage."

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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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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ALLIANCE TO FIGHT THE 40 APPLAUDS SENATORS HELLER AND HEINRICH FOR INTRODUCING BIPARTISAN SENATE BILL TO REPEAL THE CADILLAC TAX

ALLIANCE TO FIGHT THE 40 APPLAUDS SENATORS HELLER AND HEINRICH

FOR INTRODUCING BIPARTISAN SENATE BILL TO REPEAL THE CADILLAC TAX

Washington— Today, the Alliance to Fight the 40, applauded Sen. Dean Heller (R-NV) and Sen. Martin Heinrich (D-NM) for introducing the “Middle Class Health Benefits Tax Repeal Act of 2015,’’ which would repeal the 40% tax on health benefits. The Alliance to Fight the 40 is a broad-based and diverse coalition of employer and employee groups working to repeal the so-called “Cadillac Tax.”

“We would like to thank Sen. Heller and Sen. Heinrich for taking steps to help protect the more than 150 million American workers, families and retirees who rely on employer-sponsored health benefits,” said Kate Hull, Executive Director of the Corporate Healthcare Coalition. “This bipartisan legislation to repeal the Cadillac Tax will ensure that hard working Americans who like their health insurance can keep it. We urge the Senate to take action on it as quickly as possible.” 

“Repealing the 40 percent tax, thereby preserving high-quality employer-sponsored health coverage, should and would be a bipartisan, bicameral success story. We urge Senators on both sides of the aisle to support the Middle Class Health Benefits Tax Repeal Act,” said American Benefits Council President James A. Klein.

"We commend Senators Heller and Heinrich for their leadership in protecting employer-sponsored health plans that help counties attract and retain quality employees," said National Association of Counties President Sallie Clark. "The excise tax would not only hinder our ability to offer competitive health benefits, but it would also place additional burdens on taxpayers and impact county budgets."

“The bipartisan Heller-Heinrich Senate repeal bill brings us one step closer to addressing the harmful and unfair impacts of the 40 percent health benefits tax on America's middle class,” said Terry O'Sullivan, General President of the Laborers' International Union of North America (LIUNA). "We commend the Senators' leadership and look forward to working with them and the rest of the Congress to ensure that workers' across the country will be able to keep their healthcare and not have to pay this regressive tax."

The 40% tax applies to plans sponsored by both private sector and public sector employers, non-profit organizations and even self-employed individuals. The tax penalizes employers that have employees with greater health care needs, workforces with higher numbers of older workers and employers based in higher cost areas.

The Alliance to Fight the 40 is a broad based coalition comprised of public and private sector employer organizations, 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 150 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 fightthe40.com or follow us on Twitter @Fightthe40.

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