GHP November 2016

4 | ghp November 2016 Repeal of the ‘Cadillac Tax’ Provides Opportunity Repealing the ‘Cadillac Tax’ has broad bipartisan support in Congress. In the House of Representatives 154 Republicans and 156 Democrats are co-sponsors of repeal legislation and the Senate voted 90-10 to repeal the tax. Congress should repeal the ‘Cadillac Tax’ as quickly as possible, as a commitment to improving health care for the 175 million hardworking Americans who depend on employer-sponsored insurance. Given the broad Congressional and stakeholder support, repeal of the ‘Cadillac Tax’ is an achievable goal and is poised to be an essential part of the ‘first 100-day agenda.’ The ‘Cadillac Tax’ is a 40% tax on the cost of employer-sponsored health coverage that exceeds certain benefit thresholds – initially, projected to be $10,800 for self-only coverage and $29,100 for family coverage in 2020. More than just premiums are counted when determining the ‘cost’ of the plan. The cost of wellness programs, on-site clinics and other plan features designed to reduce plan expenses are also included, so that virtually everyone in an employer-sponsored plan, including low income workers and families with chronic or catastrophic health conditions, will eventually be hit with the tax. The Alliance to Fight the 40 is a broad-based coalition comprised of patient advocates, businesses, consumer and employer organisations and other stakeholders that support employer-sponsored health coverage. This coverage protects over 175 million Americans across the United States. The Alliance seeks to repeal the 40% tax on employee health benefits to ensure that employer-sponsored coverage remains an effective and affordable option for working Americans and their families. For more information on the 40% Tax on Health Benefits, visit the website at www.fightthe40.com or follow us on Twitter @Fightthe40. On 10th November the Alliance to Fight the 40, a broad-based coalition committed to repealing the 40% tax on employer- sponsored health benefits, the so-called ‘Cadillac Tax’ issued the following statement on the election results. news