Employer-Sponsored Insurance (ESI) is the most common type of health coverage in the United States, with more than 177 million Americans depending on it. But some in Congress want to tax employees on the cost of their health care benefits. Imposing a tax on employer-sponsored health plans is a dangerous policy experiment that could significantly erode employer-sponsored health coverage. Any cap on the tax exclusion is a direct tax on employees and the middle class. According to the American Health Policy Institute, capping the tax exclusion will increase the burden of the tax, which will ultimately fall on a significant number of hardworking employees and their families.
Oppose Any New Taxes on Employer Health Insurance
We have consistently opposed efforts to shift costs to employer plans in order to pay for “fixes” in the individual insurance marketplace, and we are urging all of our members to oppose any repeal/replace plan that taxes employer group health insurance benefits.
Utilize the following talking points as needed:
- It is important to remember the significant role American businesses play in our healthcare system. Approximately 177 million Americans (61 percent of covered Americans) get their health coverage through an employer.
- Imposing a tax on employer-sponsored health plans is a dangerous policy experiment that could significantly erode employer-sponsored health coverage.
- Any cap on the tax exclusion is a direct tax on employees and the middle class. We strongly oppose solving problems in the individual health marketplace with a measure that would tax benefits in the employer marketplace.
- American businesses are highly motivated to control health costs while maintaining a healthy, engaged workforce. In fact, 83 percent of employers with group health plans offer wellness programs. Placing arbitrary limits on the tax exclusion hinders their ability to offer a sustainable benefit package that meets the needs of their employee population.
- We need to stabilize the individual marketplace and not destabilize the employer-sponsored system that covers more than half of all Americans.
The next steps of the Trump Administration and the Senate are unclear, as the kettle reaches a boiling point. With so many uncertainties, we urge you to let Members of Congress know of our strong opposition to taxation of employer plans.
- Infographic: Do No Harm on Employer Plans
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