National Coalition on Benefits Letter to the Senate on the 40% Tax
The National Coalition on Benefits (NCB) urges the Senate to repeal the Affordable Care Actâ€™s 40 percent excise tax on health care benefits. NCBâ€™s member organizations, which include the many employer trade associations, strongly support the current effort in the Senate to eliminate this tax. We applaud Senators Dean Heller (R-NV) and Martin Heinrich (D-NM) for their leadership and for introducing the Middle Class Health Benefits Tax Repeal Act of 2015 (S. 2045). This bipartisan legislation would repeal the 40 percent tax. If left in place, this harmful tax will undermine the employer-sponsored health care coverage on which millions of Americans rely.
The excise tax was originally intended to affect only a small number of high-cost employer-sponsored plans. However, recent projections show that the number of employer-sponsored plans that will be subjected to the tax will be far greater than originally anticipated or intended. According to recent analysis, as many as one-third of employer-sponsored health plans will be affected by the tax in its first year. The percentage of plans affected will increase significantly each year the tax is in effect due to the flawed indexing methodology. Even if employers make efforts to control unnecessary costs, they may still not be able to avoid this tax.
NCB is a coalition of businesses and associations established to maintain employersâ€™ ability to provide uniform health and retirement benefits to employees and retirees. The Coalition is dedicated to the preservation of the Employee Retirement Income Security Act â€“ the foundational law for employer-sponsored coverage valued by all Americans who are offered health coverage through their workplace. NCB represents companies that provide health coverage to their employees and opposes any restriction that will harm or limit the ability of employers to provide meaningful health care benefits and coverage to their employees.
Congress must repeal this 40 percent excise tax. If the tax is not repealed, many employers will be forced to cut benefits, stop offering or significantly pare down wellness and disease prevention programs, or take other similarly detrimental actions. Inevitably, many employers affected by the tax will be compelled to significantly reduce health coverage for their employees or stop offering coverage altogether.
As representatives of employers of every size and sector, we urge the Senate to take quick action to repeal the harmful excise tax on health care benefits and support efforts to do so, such as those led by Senators Heller and Heinrich.Â
National Coalition on Benefits Steering Committee Association Members
American Benefits Council
Corporate Health Care Coalition
The ERISA Industry Committee
HR Policy Association
National Association of Manufacturers
National Business Group on Health
National Retail Federation
National Rural Electric Cooperative Association
Retail Industry Leaders Association
U.S. Chamber of Commerce
1.)Â Plans whose costs exceed $10,200 for individuals and $27,500 for families.