ERIC applauds House bill’s tax and HSA provisions, calls on the U.S. Senate to permanently repeal the Cadillac Tax
For Immediate Release
Washington, DC – The ERISA Industry Committee (ERIC) supports the U.S. House of Representatives’ passage of the American Health Care Act (AHCA) and appreciates the House’s efforts to enhance the ability of employers to offer benefits, reduce taxes that are passed on to health care purchasers and consumers, and prevent cost-shifting by stabilizing the individual markets.
“For more than 70 years, large employers have played a vital role in the American health care system and thanks to the American Health Care Act they will continue to have the ability to operate, improve, and innovate,” said Annette Guarisco Fildes, President and CEO, ERIC. “ERIC is especially grateful the Act allows for expansion of and improvements to Health Savings Accounts, including increasing the annual HSA contribution limit to match the annual maximum out-of-pocket cost, and targeted funding and new flexibility for insurance rules in order to stabilize the individual markets.”
As the only national association that advocates exclusively for large employers on health, retirement, and compensation public policies at the federal, state, and local levels, ERIC has been deeply involved in educating lawmakers about the damaging effects of certain taxes, including the 40 percent “Cadillac” excise tax on employer-sponsored health insurance, and other burdensome reporting requirements implemented under the Affordable Care Act. The AHCA would help to eliminate many of those, including:
- Repeal of the employer mandate;
- Repeal of numerous taxes that raise the costs of health insurance and health care, such as the taxes on pharmaceuticals, over-the-counter medicines, and limitations on Flexible Spending Accounts; and
- Further delaying the Cadillac tax.
A delay of the “Cadillac tax” is helpful, but work remains to be done. ERIC urges the Senate to permanently repeal the Cadillac tax and ensure that the bill going to the President does not subject employers and employees to any additional taxation. The health of 178 million Americans who receive employer-sponsored coverage depends on it.