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Business Group Press Release

National Business Group on Health Applauds House of Representatives Vote to Repeal ACA Excise Tax


July 18, 2019
For more information contact:
Ed Emerman
eemerman@eaglepr.com
609-275-5162

WASHINGTON, DC, July 18, 2019 – Calling it a move that will benefit the more than 181 million Americans who value and rely upon employer-sponsored coverage, the National Business Group on Health, an association of nearly 450 large U.S. employers, today applauded the House vote to repeal the highly unpopular ACA excise tax, commonly referred to as the “Cadillac Tax.”

By an overwhelming, bipartisan vote of 419 to 6, the House approved a bill that would eliminate the 40 percent excise tax on the value of health care benefits above a government-determined amount imposed by the Affordable Care Act.  The tax, which has been delayed by Congress twice, is set to go into effect in 2022 unless Congress acts. 

Brian Marcotte, President and CEO of the National Business Group on Health commented: “The House action to repeal the Cadillac tax is welcome news for both employers and employees. It’s been our steadfast position that Congress should eliminate the excise tax. Any tax that raises the cost of health benefits will harm the millions of working Americans and their families who rely on and value employer-sponsored health coverage.

“Rather than focus on demand-side taxes, particularly this flawed tax, that will raise costs for working Americans and their employers, we believe Congress should focus on reducing supply-side drivers of medical inflation and unnecessary costs,” said Marcotte.

According to the Business Group’s most recent survey of large employers, nearly three in four respondents (73%) will have at least one plan that triggers the excise tax in 2022 and 94% will in 2026. If not repealed, the tax will affect nearly 100% of employer plans since the tax is indexed to general inflation, not medical inflation, which is consistently much higher.

Steve Wojcik, Vice President, Public Policy at the National Business Group on Health, added: “There is widespread, bipartisan support to repeal this tax, and we strongly urge the Senate to also take action to eliminate this highly unpopular tax.”

About the National Business Group on Health®

The National Business Group on Health is the nation's only non-profit organization devoted exclusively to representing large employers' perspective on national health policy issues and helping companies optimize business performance through health improvement, innovation and health care management. The Business Group’s mission is to keep its membership on the leading edge of innovation, thinking and action to address health care cost and the delivery, financing, affordability and consumer experience with the health care system.  Business Group members, which include 72 Fortune 100 companies, provide health coverage for more than 50 million U.S. workers, retirees and their families. For more information, visit www.businessgrouphealth.org.

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