Letter to House Leadership Urging Repeal of the Cadillac Tax and Relief from Employer Mandate Penalties

The Honorable Paul Ryan
Speaker of the House
U.S. House of Representatives
Washington, DC 20515
The Honorable Nancy Pelosi
Minority Leader
U.S. House of Representatives
Washington, DC 20515

Dear Leaders Ryan and Pelosi:
As the House prepares to consider the Save American Workers Act (H.R. 3798) to address certain employer related provisions of the Affordable Care Act, the National Coalition on Benefits (NCB) thanks Congress for considering additional relief from the 40 percent “Cadillac Tax” on employer-sponsored health care coverage, and three years of relief from the employer mandate penalties. While we appreciate this and past congressional actions to provide relief, NCB urges you to also fully repeal the damaging Cadillac Tax as soon as possible.

Congress must act to prevent taxing employer-sponsored health benefits. More than 178 million Americans receive health coverage through employer-sponsored benefits. While the excise tax is only intended to target high-cost plans, it will ultimately affect plans with lower premiums that provide health care coverage to middle and lower income employees and their families. Absent repeal, the Cadillac Tax will especially penalize plans with disproportionately older workers, women, families and part-time workers. Further, unless the Cadillac Tax is repealed, it will slow private sector health care innovation and erode the value of the employer-sponsored health care benefits. Ultimately, employees and their families will be negatively affected by the changes in plan design that could even cause some employees to decline employer-provided health coverage. The NCB strongly urges Congress to repeal the tax this year.

The NCB is comprised of industry trade associations representing large and small businesses, as well as employers with operations and employees in all 50 states. We have long supported legislation to ensure that all Americans have access to affordable health coverage. NCB looks forward to working with you and the entire Congress as you consider proposals to achieve our shared goals and objectives for the U.S. health care system: lower costs, improved access, greater transparency and higher quality.

Sincerely,
The National Coalition on Benefits

RESOURCES

Letter to House Leadership Urging Repeal of the Cadillac Tax and Relief from Employer Mandate Penalties