For Immediate Release
Washington, DC – The ERISA Industry Committee (ERIC) applauds Representatives Mike Kelly (R-PA) and Joe Courtney (D-CT) for reaching a critical milestone on their legislation, the “Middle Class Health Benefits Tax Repeal Act of 2017” (H.R.173). The bill, which would fully repeal the 40 percent ‘Cadillac’ excise tax on employer-sponsored health insurance, is now cosponsored by more than half of all House members, meaning that if it were brought up for a vote, it is virtually guaranteed to pass. An amendment completely repealing the Cadillac tax was passed in the Senate earlier this year.
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 diligently working with lawmakers for years to repeal this dangerous tax that will destroy employer-sponsored health benefits. ERIC members –the nation’s largest employers, across all industries – are strongly committed to maintaining their ability to continue to offer tax-preferred benefits to their workforces, but without repeal of the Cadillac tax, they will be forced to reduce benefits and increasingly shift rising health care costs to employees.
Implementation of the Cadillac tax will affect 178 million Americans who get their health insurance through a job; they will be burdened with additional costs that will directly affect the quality and cost of their health benefits. The tax specifically puts women, seniors, low-income families, the disabled, and traditional employers with diverse workforces at a dangerous disadvantage.
“A majority of the U.S. House of Representatives have spoken. Now it’s time for House leadership to bring this legislation to the floor for a vote,” said James Gelfand, Senior Vice President of Health Policy, ERIC. “While the final implementation date of the Cadillac tax has been pushed to 2020, employers have already started preparing and scaling back on their benefits, so as not to trigger the tax when it goes into effect.”
ERIC will continue to work with lawmakers towards delaying and eventually fully repealing the Cadillac tax to ensure a healthy future for the employer-sponsored health insurance system.