Earlier this week, the Big “I” joined forces with a diverse group of public and private sector employers, trade associations, unions and other health insurance stakeholders to launch “The Alliance to Fight the 40: Stop the 40% Tax on Health Benefits” (Alliance to Fight the 40).

To ensure that employer-sponsored health coverage remains a meaningful and affordable option for working Americans, the Alliance to Fight the 40 is dedicated to repealing the 40% tax on employee health benefits (also known as the “Cadillac tax”) imposed by the Affordable Care Act (ACA).

Starting in 2018, the ACA will impose a 40% tax on health benefits that exceed an established annual cost. That year, health plans exceeding $10,200 a year in value for individuals or $27,500 a year for families will be subject to this 40% tax. In the future, this tax will impact a greater number of individuals while health care costs continue to rise. Congress tied the threshold to a slow measure of inflation that is unsustainable with the rising cost of health care. This means that although the levels are somewhat indexed for inflation, over time this tax will impact more and more individuals. The threshold will increase by the Consumer Price Index (CPI) plus 1 for the first two years (2018 and 2019) and only by the CPI after 2019.

According to a March survey by Mercer, a benefits consulting firm, about one-third of employers will face the tax in 2018 if they do nothing to change their plans. By 2022, almost 60% will face the levy. The Alliance to Fight the 40 predicts this will lead to a reduction in employer-sponsored coverage and an increase in employee cost-sharing—the exact opposite of the ACA’s stated goals and a result that will harm middle-income Americans across the country.

In Congress, two pieces of pending legislation in the House of Representatives attempt to repeal or amend this tax provision. Rep. Frank Guinta (R-New Hampshire) introduced H.R. 879, the “Ax the Tax on Middle Class Americans Health Plans Act of 2015,” which would fully repeal this tax. In addition, Rep. Joe Courtney (D-Connecticut) introduced H.R. 2050, the “Middle Class Health Benefits Tax Repeal Act of 2015”—similar legislation that would also repeal the tax. The Big “I” supports both efforts and looks forward to working with the Alliance to Fight the 40 to repeal this damaging tax.

Wyatt Stewart is Big “I” director of federal government affairs. Sue Nester is Big “I” director of broadcast media.