Earlier this week, the Big “I” joined forces with more than 50 trade associations to send a letter to senators urging them to scrap the Affordable Care Act's (ACA) "Cadillac” tax on high-end health plans and avoid imposing new taxes on employer-provided plans.
The Big “I” also recently met with senior officials in the Trump Administration to express the association’s opposition to new taxes on employer-sponsored plans.
When Americans receive their health care coverage through an employer, the cost of that coverage is “excluded” from an employee’s taxable income. However, during the current health reform debate, some lawmakers have proposed taxing employees on the cost of their health benefits if the cost exceeds certain thresholds set by Congress.
The Big “I” believes increasing taxes by capping the employee exclusion would not “alleviate the economic burden of the ACA,” as some supporters claim—instead, it would create new ones.
The employer-sponsored health care system covers more than 177 million Americans, leading to better health outcomes, lower costs and more satisfied employees. Employers are the foundation of a health care system that provides quality health coverage, and this coverage should be the basis of any health care reform solution.
As Congress and the Trump Administration seek to reform the health care marketplace, the Big “I” will continue advocating that they should avoid destabilizing the employer-sponsored system and the 177 million Americans it covers.
Wyatt Stewart is Big “I” senior director of federal government affairs.