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Letter to the Hon. Paul Ryan, Speaker of the House and the Hon. Nancy Pelosi, House Minority Leader - Courtney, Kelly Lead Bipartisan Coalition In Urging Repeal Of "Cadillac Tax"

Letter

By: Joe Courtney, Donald Young, Kyrsten Sinema, Zoe Lofgren, Tony Cárdenas, Lucille Roybal-Allard, Juan Vargas, Rosa DeLauro, Lois Frankel, Hank Johnson, Jr., Dave Loebsack, Bill Foster, Luke Messer, Bill Keating, Debbie Dingell, Rick Nolan, Carol Shea-Porter, Albio Sires, Ben Luján, Jr., Pete King, Jerry Nadler, José Serrano, John Katko, Tim Ryan, Dwight Evans, David Cicilline, Randy Weber, Sr., Barbara Comstock, Mark Pocan, Raul Grijalva, Jackie Speier, Judy Chu, Norma Torres, Lou Correa, Ed Perlmutter, Val Demings, Frederica Wilson, Tulsi Gabbard, Jan Schakowsky, Pete Visclosky, Seth Moulton, Chellie Pingree, Keith Ellison, Walter Jones, Jr., Joshua Gottheimer, Michelle Lujan Grisham, Ruben Kihuen, Grace Meng, Adriano Espaillat, John Faso, Marcy Kaptur, Peter DeFazio, Brendan Boyle, Steve Cohen, Marc Veasey, Derek Kilmer, Ruben Gallego, Eric Swalwell, Adam Schiff, Linda Sánchez, Alan Lowenthal, John Larson, Charlie Crist, Jr., Buddy Carter, Rod Blum, Brad Schneider, Todd Rokita, Stephen Lynch, Dan Kildee, Collin Peterson, Kevin Cramer, Leonard Lance, Steve Pearce, Lee Zeldin, Nydia Velázquez, Joe Crowley, Paul Tonko, Marcia Fudge, Bob Brady, Matt Cartwright, Al Green, Mia Love, Pramila Jayapal, French Hill, Tom O'Halleran, John Garamendi, Paul Cook, Salud Carbajal, Julia Brownley, Pete Aguilar, Grace Napolitano, Mark Takano, Maxine Waters, Scott Peters, Doug Lamborn, Elizabeth Esty, Eleanor Norton, Ted Deutch, Debbie Wasserman Schultz, David Scott, Colleen Hanabusa, Robin Kelly, Dan Lipinski, Rodney Davis, Cheri Bustos, John Yarmuth, Jim McGovern, Dutch Ruppersberger, Jamie Raskin, Tim Walz, Betty McCollum, Trent Kelly, Bennie Thompson, Annie Kuster, Donald Norcross, Bill Pascrell, Jr., Bonnie Watson Coleman, Dina Titus, Jacky Rosen, Kathleen Rice, Gregory Meeks, Dan Donovan, Jr., Carolyn Maloney, Eliot Engel, Nita Lowey, Brian Higgins, Bob Gibbs, Dave Joyce, Suzanne Bonamici, Mike Kelly, Jr., Lou Barletta, John Duncan, Jr., Scott DesJarlais, Vicente Gonzalez, Gene Green, Suzan DelBene, Rick Larsen, David McKinley
Date: Nov. 21, 2017
Location: Washington, DC
Issues: Health and Health Care

Dear Speaker Ryan and Leader Pelosi:

As Members committed to ensuring high-quality health care benefits for working Americans, we write to request immediate action on the excise tax on certain employer-sponsored health plans included as part of the Affordable Care Act (ACA). It is our understanding that legislation being crafted to address many outstanding health care issues before the end of the year includes a number of provisions to address health-related tax policy. We strongly believe that action to repeal or delay the so-called "Cadillac Tax" should be included in this and any related package given the very real consequences of the tax already being experienced today by U.S. workers.

While Congress has already delayed implementation of this excise tax until 2020, the policy is already having an impact. Large employers and labor unions are currently negotiating benefits packages that stretch into 2020, with many employers reporting that they are considering reducing the value of their health benefits to avoid this excise tax. We cannot wait to repeal it.

While some claim that this tax was intended to hit only the most generous "Cadillac" plans, that notion is mistaken since millions of hardworking Americans and their families face a significant reduction of their benefits with an increase in their cost-sharing should as a result of this tax. In reality, the tax unfairly and disproportionately affects middle-income Americans, women, and their families. Moreover, older workers and small businesses would also be heavily impacted.

A survey by the American Health Policy Institute found that 31 percent of large employers would have a health care plan subject to the tax by the first year of implementation, and 42 percent would have a plan subject to the tax by the second year. If this tax is not repealed, the out-of-pocket costs for Americans with employer-sponsored health insurance will rise at their expense.

The 40 percent excise tax has been widely opposed by both Democrats and Republicans along with a wide coalition of business, health, and labor organizations. More than 200 members of the U.S. House of Representatives have cosponsored legislation to repeal this burdensome tax. We, therefore, urge you to address the Cadillac Tax in any health or tax-related legislation that comes before Congress for a vote this year.

Sincerely,


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