Big ‘I’ Addresses ACA in Letter to Congress

Last week, the Big “I” partnered with the American Benefits Council and other business groups to send Congress a letter opposing several burdensome health care taxes.

The letter urges Congress to repeal the Affordable Care Act’s (ACA) 40% “Cadillac” tax on health benefits. It also advises Congress not to cap the individual tax exclusion for employer-provided health care benefits or limit employers’ deductibility of health care expenses. Potential ACA replacement plans have proposed both capping the individual tax exclusion for employer-provided health care benefits and limiting employers’ deductibility.

While the Big “I” supports efforts that aim to control health care costs, the association believes that limiting an employer’s deduction or capping an employee’s exclusion will not accomplish that objective. The letter makes clear that the Big “I” believes both measures will raise costs for employers and employees.

Increasing taxes on individuals, employers or their health insurance will not reduce the cost of delivering health care. These measures will, however, constitute a tax increase and drive up out-of-pocket health care costs for employees and their families—risking disruption to the system and threatening the benefits which working families value.

Wyatt Stewart is Big “I” senior director of federal government affairs.