News & Press: ECFC in the News

ECFC Signs on to Stakeholder Letter in Support of Repeal of Cadillac Tax

Friday, March 1, 2019   (0 Comments)
Posted by: Martin Trussell
Share |

ECFC today joined with more than 500 organizations including, businesses, nonprofits, chambers of commerce, insurers, brokers, unions, and patient advocacy groups signed a letter urging support for H.R. 748, the “Middle Class Health Benefits Tax Repeal Act of 2019,” to repeal the 40 percent “Cadillac Tax” on employer-provided health care coverage.

The letter, signed by 585 stakeholders, urges Congress to “work together to swiftly repeal the impending 40 percent tax on employer-provided health care before working Americans and their families, who are already stretched too thin, are hit with this onerous tax increase.”

Although the tax isn’t slated to hit until 2022, employers are faced with a long benefits planning window, between two and five years, which means they have already been making benefits changes to avoid triggering the tax.  Those changes mean reduced benefits and higher out-of-pocket costs for the 181 million Americans who get their health insurance coverage through their employer.

On January 24, 2019, Rep. Joe Courtney (D-CT) and Rep. Mike Kelly (R-PA) introduced H.R. 748, the “Middle Class Health Benefits Tax Repeal Act of 2019,” to repeal the 40 percent tax on employer-provided health care coverage. The current bill has 210 cosponsors. In the previous Congress, similar legislation garnered more than 300 bipartisan cosponsors. This Congress, over 585 diverse stakeholders agree, it’s time for this tax to go.