Many thanks to the organizations that have previously signed letters supporting full repeal of the 40% tax on employer-provided health care coverage — AKA the “Cadillac Tax!” The letters were extremely helpful in garnering cosponsors for H.R. 748 (370) and S. 684 (63) and building support for repealing the tax in the House.

In July, the House passed a standalone bill fully repealing the 40% “Cadillac Tax” by an overwhelming vote of 419 to 6 and that bill is currently awaiting action by the Senate.

The purpose of this letter is to show the Senate that passing a bill to fully repeal the “Cadillac Tax” is an urgent matter that must be addressed now—before the end of the year. Congress will not act without a strong showing of our support.

Below is the text of a letter urging Senate Leadership to fully repeal the “Cadillac Tax” before the end of the year.

If your organization would like to sign on, please fill out the form at the bottom. (Note: this is a "non-branded" letter that does not have a logo/letterhead at the top, just the signatures from the organizations at the bottom.) After you sign, please share it with other employers and stakeholders.

The deadline to sign on to this letter is Wednesday, December 4th at noon. (Deadline extended! Company names will continue to be added to the letter.)

If you have any questions, please feel free to reach out to Tara Bradshaw: tara.bradshaw@ey.com or 202-441-8255.


TEXT OF LETTER

[December XX, 2019]

Dear Majority Leader McConnell and Minority Leader Schumer,

The undersigned organizations —a diverse group of employers, industries, health care stakeholders, unions, patient and disease groups — urge you to take immediate action to protect the health care of the more than 178 million Americans who receive health care coverage through an employer. We are asking you to swiftly, and fully, repeal the impending 40% tax on employer-provided health care before this onerous tax increase hits the pocketbooks of hardworking Americans.

In July, the House passed a bill fully repealing this tax by an overwhelming vote of 419 to 6 and that bill is currently awaiting action in the Senate.

The consequences of inaction are serious for hardworking American families.  Employers are making decisions today to avoid this looming tax. Many millions of working Americans will pay more out of pocket for medical treatment or face reduced health coverage in narrower networks.  According to Kaiser Family Foundation 2018 data, since 2010, health care deductibles have risen 89%, while wage growth has remained comparatively flat.

To avoid the huge “Cadillac Tax” hikes coming in 2022, many employers are altering their benefit packages now.  Employers that offer non-calendar year health plans, could begin, as early as next year, enrolling people into health plans that could be subject to the tax.

While this tax was intended to only hit Americans with “gold-plated” plans, the reality is that very modest plans covering low- and moderate-income working families are projected to trigger the tax simply because they incur greater health expenses. The tax will disproportionately affect the health plans of women, seniors, rural communities, the sick, and the disabled. Small businesses that already struggle to offer health care coverage will also be heavily penalized. This tax has real and harmful consequences – Americans cannot afford to pay more for their health care.

Employer-provided coverage is the backbone of our health care system and the primary source of coverage for more than half of all Americans. According to recent polling, 93% of voters oppose taxing employer-provided health coverage.

The 40% “Cadillac Tax” on employer-provided health coverage is widely opposed by both Republicans and Democrats. Along with the 419 members of the House that voted to fully repeal this tax, there are 63 bipartisan Senate cosponsors of S. 684, the Middle-Class Health Benefits Tax Repeal Act of 2019.

Working families are already stretched too thin. They need a meaningful WIN—one that cuts taxes, lowers health care costs, and protects employer-provided health care coverage. It all starts with repealing the “Cadillac Tax.”

Let’s work together to keep health care affordable and available for 178 million Americans.

Sincerely,