Washington, D.C. (October 28, 2015) – The true impacts of the Cadillac Tax have become clearer, writes U.S. Representative Joe Courtney (D-CT) in a Huffington Post piece that calls for the repeal of the “Cadillac tax.” In the Op-Ed, Rep. Courtney argues the tax not only affects those with "Cadillac plans," but also negatively impacts the health plans of other Americans including working families, retirees, and older workers.
Key excerpts include:
“In the five years since I initially led opposition to the Cadillac tax, the true impacts of this unfair provision on older workers, women, and families in high-cost regions have become clearer. Top actuarial firms including TowersWatson have concluded that these factors, not generosity of health benefits, play a much larger role in determining the cost of health insurance premiums.”
“Fundamentally, the tax on high-cost health plans will degrade the quality of insurance plans available to employees of all stripes -- teachers, emergency personnel, factory workers, and a myriad of others who may have negotiated for better health insurance plans by forgoing wage increases in the past.”
“If the goal of the Cadillac tax is to reduce superfluous health care spending, as its proponents assert, then it will also reduce necessary health care spending, which leads to poorer outcomes for patients.”
“The Cadillac tax would disincentivize valuable care, as consumers are forced to decide whether or not to make a costly visit to the doctor. The tax is a blunt, indiscriminate instrument that must be repealed as soon as possible before it reduces access to necessary care, and damages the important progress we have made in reducing uninsured rates and intelligently bending the cost curve of health care spending.”
Read the full op-ed here.
The Alliance to Fight the 40 is a broad based coalition comprised of public and private sector employer organizations, unions, health care companies, businesses and other stakeholders that support employer-sponsored health coverage. This coverage is the backbone of our health care system and 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 our website atwww.fightthe40.com or follow us on Twitter @Fightthe40.
