Kelly Broadway, 202.627.1918, email@example.com
For Immediate Release
ERIC Applauds Call for Elimination of Onerous Health Care Taxes
Washington, DC – The ERISA Industry Committee (ERIC) applauds Chairman Orrin Hatch’s (R-Utah) opening statement at today’s Senate Finance Committee’s meeting, where he called for the elimination of the health insurance tax (HIT) on fully insured health plans and the 40 percent “Cadillac” excise tax on employer-sponsored health insurance.
ERIC, the only national association that advocates exclusively for large employers on health, retirement, and compensation public policies at the federal, state, and local levels, has actively been working with Congress to fully repeal the HIT and Cadillac tax. ERIC and its members are committed to improving the health care system, reducing the costs of health insurance and health care, and reducing the burdens on plan sponsors who voluntarily offer high-quality benefits to employees, retirees, and their families.
An Oliver Wyman study found that next year the HIT will cost Americans $22 billion, while the Cadillac tax, the most dangerous tax increase established by the Affordable Care Act, will force employers to scale back benefits and increasingly shift rising health care costs to employees. The tax will eventually consume all health care plans, putting women, seniors, low income families, the disabled, and traditional employers with diverse workforces at a dangerous disadvantage. Recent surveys found that in 2020, 53% of large employers will have at least one plan hit by the Cadillac tax, and the percentage rises to a devastating 93% in 2026.
“The ERISA Industry Committee appreciates Chairman Hatch’s call for the elimination of these unnecessary, burdensome taxes that directly raise costs on employers, employees, their families, and retirees,” said James Gelfand, SVP of Health Policy, ERIC. “Employers voluntarily provide health insurance benefits to 178 million Americans because they understand the importance of a healthy workforce. Lawmakers must shield workers and employees from these dangerous taxes in order to protect the employer-sponsored health insurance system that so many Americans depend upon.”
About the ERISA Industry Committee
The ERISA Industry Committee (ERIC) is the only national association that advocates exclusively for large employers on health, retirement, and compensation public policies at the state, federal, and local levels. Learn more at eric.org.