National Business Group on Health Encourages Congress to Repeal the “Cadillac” Tax
WASHINGTON, Dec. 16, 2019 (GLOBE NEWSWIRE) -- Calling it a move that will benefit the more than 178 million Americans who value and rely upon employer-sponsored coverage, the National Business Group on Health, an association of over 440 employers who cover 60 million people, today urged Senate action to repeal the highly unpopular ACA excise tax, commonly referred to as the “Cadillac” tax.
The tax, which was been delayed by Congress twice is set to go into effect in 2022 without Congressional action. The House has already voted to repeal it by an overwhelming margin of 419-6 and there are over 60 Senate co-sponsors.
Brian Marcotte, President and CEO of the National Business Group on Health commented: “Congress’ action now would be welcome news for both employers and employees. Any tax that raises the cost of health benefits will harm the millions of working Americans and their families who rely on and value employer-sponsored health coverage.
“We can’t tax our way out of this problem. Roughly 30% of health care spending is wasted on unnecessary or poorly delivered care. Congress should focus on the drivers of medical inflation and unnecessary costs rather than taxing employees and employers,” said Marcotte.
According to the Business Group’s most recent survey of large employers, nearly three in four respondents (73%) have had at least one plan that would trigger the excise tax in 2022 and 94% would in 2026.
Steve Wojcik, Vice President, Public Policy at the National Business Group on Health, added: “Repealing this highly unpopular tax would be great news for employees, their families, and employers who provide coverage.”
About the National Business Group on Health®
The National Business Group on Health is the nation’s only non-profit organization devoted exclusively to representing large employers’ perspective on national health policy issues and helping companies optimize business performance through health improvement, innovation and health care management. The Business Group’s mission is to keep its membership on the leading edge of innovation, thinking and action to address health care cost and the delivery, financing, affordability and consumer experience with the health care system. Business Group members, which include 74 Fortune 100 companies, provide health coverage for more than 60 million workers, retirees and their families. For more information, visit www.businessgrouphealth.org.
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