[Congressional Record Volume 165, Number 120 (Wednesday, July 17, 2019)]
[House]
[Pages H5958-H5973]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
MIDDLE CLASS HEALTH BENEFITS TAX REPEAL ACT OF 2019
Mr. NEAL. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 748) to amend the Internal Revenue Code of 1986 to repeal
the excise tax on high cost employer-sponsored health coverage, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 748
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Middle Class Health Benefits
Tax Repeal Act of 2019''.
SEC. 2. REPEAL OF EXCISE TAX ON HIGH COST EMPLOYER-SPONSORED
HEALTH COVERAGE.
(a) In General.--Chapter 43 of the Internal Revenue Code of
1986 is amended by striking section 4980I.
[[Page H5959]]
(b) Conforming Amendments.--
(1) Section 6051 of such Code is amended--
(A) by striking ``section 4980I(d)(1)'' in subsection
(a)(14) and inserting ``subsection (g)'', and
(B) by adding at the end the following new subsection:
``(g) Applicable Employer-Sponsored Coverage.--For purposes
of subsection (a)(14)--
``(1) In general.--The term `applicable employer-sponsored
coverage' means, with respect to any employee, coverage under
any group health plan made available to the employee by an
employer which is excludable from the employee's gross income
under section 106, or would be so excludable if it were
employer-provided coverage (within the meaning of such
section 106).
``(2) Exceptions.--The term `applicable employer-sponsored
coverage' shall not include--
``(A) any coverage (whether through insurance or otherwise)
described in section 9832(c)(1) (other than subparagraph (G)
thereof) or for long-term care,
``(B) any coverage under a separate policy, certificate, or
contract of insurance which provides benefits substantially
all of which are for treatment of the mouth (including any
organ or structure within the mouth) or for treatment of the
eye, or
``(C) any coverage described in section 9832(c)(3) the
payment for which is not excludable from gross income and for
which a deduction under section 162(l) is not allowable.
``(3) Coverage includes employee paid portion.--Coverage
shall be treated as applicable employer-sponsored coverage
without regard to whether the employer or employee pays for
the coverage.
``(4) Governmental plans included.--Applicable employer-
sponsored coverage shall include coverage under any group
health plan established and maintained primarily for its
civilian employees by the Government of the United States, by
the government of any State or political subdivision thereof,
or by any agency or instrumentality of any such
government.''.
(2) Section 9831(d)(1) of such Code is amended by striking
``except as provided in section 4980I(f)(4)''.
(3) The table of sections for chapter 43 of such Code is
amended by striking the item relating to section 4980I.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2019.
SEC. 3. BUDGETARY EFFECTS.
(a) Statutory PAYGO Scorecards.--The budgetary effects of
this Act shall not be entered on either PAYGO scorecard
maintained pursuant to section 4(d) of the Statutory Pay-As-
You-Go Act of 2010.
(b) Senate PAYGO Scorecards.--The budgetary effects of this
Act shall not be entered on any PAYGO scorecard maintained
for purposes of section 4106 of H. Con. Res. 71 (115th
Congress).
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Massachusetts (Mr. Neal) and the gentleman from Pennsylvania (Mr.
Kelly) each will control 20 minutes.
The Chair recognizes the gentleman from Massachusetts.
General Leave
Mr. NEAL. Madam Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks and
include extraneous material on this bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Massachusetts?
There was no objection.
Mr. NEAL. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I rise today in support of H.R. 748, the Middle Class
Health Benefits Tax Repeal Act of 2019.
After a decade of fiercely debating the merits of the Affordable Care
Act, I hope we have turned a corner today and can now focus on
strengthening the parts of the law that work in the manner we had
intended and changing the parts of the law, which is not unusual, that
we believe could be improved.
This legislation, tirelessly championed by Representative Joe
Courtney of Connecticut, with 367 bipartisan cosponsors, addresses the
so-called ``Cadillac tax,'' a part of the law that had the unintended
consequences of reducing healthcare benefits that were provided to
certain American workers.
More than 181 million Americans currently depend upon employer-
sponsored health insurance. That is the majority of the American
people, including retirees, low-and moderate-income families, public-
sector employees, small business owners, and nonprofit workers.
While the name ``Cadillac tax'' implies this excise tax only applies
to luxury health coverage, the truth is it will eventually apply to
almost every American with employer-sponsored health insurance.
At a time when American families are already worried about the
healthcare costs that apply to them, the Cadillac tax has had the
effect of increasing deductibles and out-of-pocket costs as employers
make changes in their plans designed to avoid the tax.
We have also found that the Cadillac tax affects health plans that
have higher numbers of workers with chronic diseases or serious
illnesses, that cover more than a million women or families, or that
offer coverage to part-time workers because premiums for those plans
are often higher.
This was not the goal of this tax when it was originally included in
the ACA. I know because I helped to negotiate and to write the
Affordable Care Act.
Congress wanted to encourage employers and insurance companies to
find ways to offer better coverage at lower costs. And, while many
actions in the ACA did bend the cost curve, leading to better care and
slower cost growth, this excise tax, indeed, did not.
We want employers to cover their workers with robust, meaningful
benefits. A good American job with a strong health benefit is part of
security.
Employers want this for their employees, labor wants this for their
members, and American workers and their families want to know they can
get the care they need when they need it.
This legislation, as I noted earlier, has strong bipartisan support
with a diverse group of stakeholder organizations endorsing the
legislation, from labor to chamber of commerce to patient
organizations.
If we fail to repeal the Cadillac tax, we will leave working families
with less healthcare coverage, higher out-of-pocket healthcare costs,
and little to no resultant wage increases.
Madam Speaker, I urge my colleagues to support this legislation, and
I reserve the balance of my time.
Mr. KELLY of Pennsylvania. Madam Speaker, I yield myself such time as
I may consume.
Madam Speaker, this is a great day for us. We worked with Chairman
Neal on this and Joe Courtney. I don't normally go out on a limb, but
it is nice to see a bunch of Irish guys get together--I am not sure you
can say that anymore in the people's House--to make sure that we are
protecting so many people who have earned healthcare through their
employer.
I think the last couple days, if you were to look at what happened
here in the House and you were to go back home and talk to people back
home, they would ask, ``Can't you guys get along on anything? Can't you
put away these things you fight over and actually start to talk about
the things that help us? Can't you do things like that?''
We have watched it, Madam Speaker, and I am sure people are back home
saying, ``They can't do anything.''
Well, I am here to tell you today that is just not true. You are
going to see a bipartisan effort today on a bipartisan bill to make
sure that hardworking Americans get to keep their employer-sponsored
healthcare.
Those are people in labor unions. Those are people in everyday
businesses: small businesses, big businesses, all across the board.
What we are doing today is a move in the right direction. What we are
doing today is truly bipartisan, and we hope it becomes bicameral.
Today you are going to see both Republicans and Democrats come
together to do the right thing for the right reasons, and good things
are going to come of that.
It just doesn't get any better than this, especially at a time when
you go back home and people just look at us and say, ``Holy smokes. On
the floor of the people's House, you guys can't get along on
anything?''
Well, we are. We are going to get along on something. And we are
going to do something that is really big, and we are going to pass H.R.
748, the Middle Class Health Benefits Tax Repeal Act. It is also known
as the Cadillac tax.
I happen to be a Cadillac dealer. Cadillac has forever been described
as the standard of the world.
The healthcare piece we are talking about is a standard of the world.
And so many times in the past it was described as, this is just too
darn generous for generations of people who
[[Page H5960]]
went to the bargaining table and negotiated, as part of their labor
agreements, healthcare.
{time} 1630
Too generous? Too good?
For all those who thought that was a good statement or a good idea,
that is just too bad because it was terrible. It made no sense.
Today, we are going to change that. We are going to take the time we
have today on the floor to talk about it, to talk to our colleagues and
say we all need to be on board with this.
By the way, the gentleman knows this because we have been working on
it for a long time. It is the gentleman's bill this session, but it has
gone back and forth, depending on who the majority is.
This is the end of today's talking when it comes to partisan gridlock
because it is not going to happen. Much like Mark Twain when he was
overseas one time, in London, and somebody printed in the paper that
Mark Twain was not only ill but that he had died. Mark Twain replied,
``The reports of my death are greatly exaggerated.''
Let's use that today when we talk about the fact that we can't get
along here in the people's House.
The gentleman and I have worked hard on this. Last Congress, we had
304 cosponsors. This Congress, our legislation has more than 370
cosponsors. That is the majority of both parties, Democratic and
Republican.
Our bill is going to repeal this onerous tax, originally passed as
part of the Affordable Care Act, that would have been assessed on any
health plan that would provide more than $10,200 for individual
coverage, $27,500 for family coverage.
I deplore the fact that it was called too generous for hardworking
Americans who get up every day and go off to work to make sure they can
put a roof over the head of their family, food on the table, clothes on
the backs of their kids, and somehow plan for the future. If that is a
bad benefit, I want to see what a good one looks like.
According to researchers, it is projected--I think Chairman Neal just
went over some of these numbers--that 75 percent of employer-sponsored
health plans would be affected if we allow this tax to stand.
That was put in the Affordable Care Act, but it was never enforced.
Today, we have a chance to do away with it fully, just repeal it. That
is what we are trying to get to.
The groups that support this legislation go across the board. There
are millions of workers waiting for us to do something today to act in
their best interests. More than 665 organizations have weighed in, in
support of repealing this tax.
It is absolutely an incredible effort that is going to take place
today. I can't say this enough: It is a bipartisan effort by the
majority of both parties to get this done for hardworking Americans, to
protect not only themselves but their families.
It is a benefit of generational negotiations. It is an incredible
piece of legislation that we are going to get through today.
I could keep talking about this forever. I can't wait to get back
home again to tell people we got it done. Keep in mind, I am going to
say that ``we got it done,'' not that ``I got it done.''
I have never seen another place where people take credit for
legislation that they had nothing to do with, that they kind of
inherited from previous sessions and say, ``Well, this is my bill.''
This is not my bill. This is a bill that we have been trying to pull
off for many, many years, not just me, not just Joe Courtney, but
together, all of us, Republicans and Democrats, acting in the best
interests of the people we represent here on the floor of the people's
House.
Madam Speaker, I reserve the balance of my time.
The SPEAKER pro tempore. Without objection, the gentlewoman from
Washington (Ms. DelBene) is designated to control the balance of the
time and is recognized.
There was no objection.
Ms. DelBENE. Madam Speaker, I yield 3 minutes to the gentleman from
Connecticut (Mr. Courtney), the lead sponsor of this legislation.
Mr. COURTNEY. Madam Speaker, I thank Congresswoman DelBene for her
leadership managing this bill and the Ways and Means Committee for
embracing it. Their advocacy sends a powerful message to the House to
pass the Middle Class Health Benefits Tax Repeal Act of 2019.
I also thank my friend, Representative Mike Kelly, for his
bipartisan support of the bill, defying the polarized politics that too
often dominates the healthcare debate.
Madam Speaker, this bill today comes with the support of more than
660 healthcare groups that represent millions of Americans who have
joined together to repeal the 40 percent excise tax on health plans
scheduled to go into effect in 2022.
Madam Speaker, this tax was a late add-on to the Affordable Care Act
deliberations and has been rattling around inoperable in the Federal
Tax Code since 2010, never actually having collected a penny of revenue
but, nonetheless, casting a statutory shadow over 180 million
Americans' health plans, which we know, from HR administrators and
employee reps in real life, has added pressure to shift coverage into
higher deductible plans, which falls on the backs of working Americans.
As the Commonwealth Fund recently reported, the number of Americans
who are underinsured as a result of high deductibles has grown by over
50 percent since 2005. The Kaiser Family Foundation just reported that
31 percent of employer health plans will get hit by the excise tax in
2022, and that number will skyrocket soon after.
Passage of this bill will lift the shadow that hangs over employer-
sponsored plans and stop the high deductible trend from worsening.
As the bill's lead sponsor, I want to foot stomp that the repeal of
the tax does not touch the architecture of the ACA's patient
protections. Repeal is completely severable from the other 440 sections
of the law and leaves intact essential health benefits and the
elimination of preexisting condition exclusions and lifetime limits.
Given that those patient protections have been in full operation for
the last 10 years, during which this zombie tax has been in a coma, it
is abundantly clear that the tax is disconnected from the rest of the
law.
Lastly, I want to underscore the CBO determination that passage will
not result in any increase in the number of uninsured.
Madam Speaker, with 370 House cosponsors, I am hopeful that an
overwhelming tally tonight will send a laser-like message to the Senate
to adopt this bill as soon as possible, as is.
Madam Speaker, I include in the Record letters from Families USA, a
strong advocate for the ACA, as well as the Council of Insurance Agents
& Brokers, in support of the bill, and a 2009 letter signed by 188
supporters of the ACA in support of this repeal of the excise tax.
FamiliesUSA,
July 15, 2019.
Hon. Nancy Pelosi,
Speaker, House of Representatives,
Washington, DC.
Hon. Kevin McCarthy,
Minority Leader, House of Representatives, Washington, DC.
Dear Speaker Pelosi and Leader McCarthy: On behalf of
Families USA, a leading national voice for health care
consumers, I write to offer our support for legislation that
will be considered by the full House of Representatives this
week, H.R. 748, the Middle Class Health Benefits Tax Repeal
Act of 2019. This bipartisan legislation would repeal the
excise tax on high value employer-sponsored health care
coverage, also known as the ``Cadillac Tax''. At a time when
almost half of our nation's families report that they are
forgoing needed medical care because they cannot afford the
care, policymakers should make sure that employers doing the
right thing and providing high value health insurance to
their employees are supported, not penalized with an
egregious tax.
More than 181 million people--a majority of the country--
receive employer-sponsored insurance. The Affordable Care Act
(ACA) included a provision to impose a 40 percent excise tax
on high-cost and high-value employer-sponsored insurance
(ESI) coverage. This provision was recently delayed for a
second time, until 2022. While the tax would be levied on
employers, experts expect its costs largely would be shifted
to employees and their families.
The Cadillac Tax is built on the supposition that by
exposing our nation's families to even more financial
vulnerability in their health care, families will manage to
bring their own health care costs down. Creating greater
financial insecurity for families is
[[Page H5961]]
not the answer. It is the primary responsibility of policy
makers, the health care sector, and the government to solve
the health care cost crisis. And your constituents agree.
More than 80 percent of people in this nation--both Democrats
and Republicans--believe it's the responsibility of the
government to get control of out-of-control health care
costs.
H.R. 748 is an important opportunity for Congress to
support high quality health care and the employers that
provide it. In recent years, deductibles in ESI plans have
risen considerably while costs have continued to grow. The
so-called ``Cadillac Tax'' creates the wrong incentive to
employers around the nation. What we need now is higher value
insurance, not lower value coverage.
H.R. 748 has widespread, bipartisan support, and boasts 361
cosponsors, including 199 Democrats and 162 Republicans. We
urge the House of Representatives to support working families
and the employers providing these families high quality
health insurance and pass H.R. 748 when it comes to the
floor.
Sincerely,
Frederick Isasi,
Executive Director.
____
The Council,
July 15, 2019.
Re H.R. 748, The Middle Class Health Benefits Tax Repeal Act
of 2019.
Hon. Nancy Pelosi,
Speaker, House of Representatives,
Washington, DC.
Dear Madame Speaker: On behalf of The Council of Insurance
Agents and Brokers (``The Council''), I write to express our
members' strong support for H.R. 748, The Middle Class Health
Benefits Tax Repeal Act of 2019. The legislation repeals the
looming ``Cadillac Tax'' that undermines the employer
sponsored insurance market. The ``Cadillac tax'' is a 40% tax
on the value of employer-sponsored health coverage that
exceeds certain benefit thresholds--estimated to be $11,100
for self-only coverage and $29,750 for family coverage in
2022. We thank Congressman Joe Courtney and Mike Kelly for
their leadership on this important issue, and urge members of
the House of Representatives to support H.R. 748.
By way of background, The Council represents the largest
and most successful employee benefits and property/casualty
agencies and brokerage firms. Council member firms annually
place more than $300 billion in commercial insurance business
in the United States and abroad. Council members conduct
business in some 30,000 locations and employ upwards of
350,000 people worldwide. In addition, Council members
specialize in a wide range of insurance products and risk
management services for business, industry, government, and
the public.
The ``Cadillac Tax,'' has been delayed twice by Congress to
protect Americans from its harmful impact. But the latest
implementation date of 2022 continues to cause an adverse
effect on the affordability and quality of health coverage
available to employees and their families. The Kaiser Family
Foundation notes that deductibles have risen 89% since 2010,
while wage growth has remained comparatively flat.
The tax was intended to impact Americans with ``gold-
plated'' plans, but the reality is that very modest plans
covering low- and moderate-income working families will
trigger the tax. More than 181 million Americans--including
retirees, low- and moderate-income families, public-sector
employees, small business owners, nonprofit workers and the
self-employed--currently depend on employer-provided health
coverage. Employer provided coverage covers more Americans
than Medicare and Medicaid combined. This tax has real and
harmful consequences--Americans cannot afford to pay more for
their health care.
Thank you again for your continued efforts to address these
important issues.
Best,
Ken A. Crerar,
President/CEO, The Council.
Joel Wood,
SVP, Government Affairs, The Council.
Joel Kopperud,
VP, Government Affairs, The Council.
____
Congress of the United States,
Washington, DC, October 7, 2009.
Speaker Pelosi,
Office of the Speaker,
Washington, DC.
Dear Speaker Pelosi: As Congress continues to consider
revenue sources for America's Affordable Health Choices Act
and other health insurance reform proposals, we strongly
encourage you to reject imposing an excise tax on so called
high cost insurance plans. Such a tax would impact regions
with high health care costs in the short-term, and, in the
long-term, inevitably extend to more and more middle-income
Americans across the country.
As you know, the Senate Finance Committee reform proposal,
America's Healthy Future Act, currently includes a 40 percent
excise tax on insurers for plans that exceed certain cost
thresholds. Real life experience with both health insurers
and inelastic markets for services such as health insurance
has clearly warned us that this tax will be passed along to
insurance payers. Beginning in 2013, the threshold for
individual plans will be $8,000 and $21,000 for family
coverage. In subsequent years, increases in the cost
thresholds will be tied to the Consumer Price Index for urban
consumers (CPI-U) plus one percent. The proposal also
includes a transition relief rule, which will set cost
thresholds 20 percent higher for the 17 highest cost states.
The transition relief rule will be phased out by 2016. It is
important to note that the proposed thresholds for such a tax
already have been surpassed for many middle-income Americans
in 2009.
For middle-income Americans that have forgone wage and
salary increases for strong insurance benefits, these
thresholds are simply too low. And, for middle-income
Americans who live in the nation's highest cost regions for
health care, the transition relief rule is also too low and
phased out far too soon.
A Commonwealth Fund report issued on August 20, 2009,
``Paying the Price: How Health Insurance Premiums Are Eating
Up Middle-Class Incomes,'' outlined projected increases in
insurance premiums if nothing is done to change the current
cost trajectory. According to the report, average insurance
premiums will increase 94 percent over the next ten years,
with average annual increases of 5.7 percent. The report went
on to conclude that average premium costs for family coverage
in 2015 will range from $15,508 in the lowest cost state to
$19,731 in the highest cost state. Considering high and low
cost states will be treated the same with regard to the
proposed excise tax in 2015, the average premium projections
in high cost regions teeter on the projected cost thresholds
of the excise tax.
Further, the lessons learned from the alternative minimum
tax (AMT) should also serve as a warning for the creation of
an excise tax on high cost insurance plans. Over the past
four decades, the AMT has morphed from a tax on the
wealthiest Americans to a tax on the middle class. In 1969,
when the AMT was first enacted, the tax impacted only the
wealthiest of Americans. In 2010, nearly one in five
Americans will be subjected to the tax. A similar situation
with the proposed excise tax is possible considering our
experiences with medical inflation.
While America's Affordable Health Choices Act will work to
rein in insurance premium costs, these savings will be
generated from long-term fixes and may not substantially
mitigate premium costs in the short-term before the costs of
such an excise tax are passed from the insurer to the
customer, including middle-income families.
Beyond these other arguments, there is a fundamental flaw
in assuming a tax on so called high cost plans will sway
choice of insurance coverage, and in turn, discourage
wasteful health care spending. This assumption is based on
access to a substantial choice in coverage, which is
certainly not the case under our current system. Today, small
employers pay more for a given insurance plan than a large
employer-- not because of benefit quality or an employees'
excessive use of plan benefits, but due to smaller risk
pools. While America's Affordable Health Choices Act will
help close most of these price discrepancies, this won't be
achieved until 2018 when all reforms are enacted. Further,
America's Affordable Health Choices Act will allow for
continued use of age rating with determining premium costs.
While age rating will be restricted, the practice underscores
limited choice for cheaper coverage options.
America's Affordable Health Choices Act includes sensible
revenue sources to pay for the legislation. However,
inclusion of an excise tax on high cost insurance plans, as
proposed by the Senate Finance Committee, could have
significant and detrimental implications for millions of
middle-class Americans. The short-term impact would be
greatest on individuals and families living in high cost
regions and for those that have sacrificed pay increases for
strong benefits. Over the long term, the number of
individuals and families subjected to the tax would likely
continue to grow. To this end, we urge you to continue to
reject proposals to enact an excise tax on high cost
insurance plans that could be potentially passed on the
middle class families.
We look forward continuing to work with you to advance
health care reform legislation that expands coverage and
lowers care costs.
Sincerely,
Joe Courtney.
Tim Walz.
Allyson Schwartz.
Mike Ross.
COSIGNATORIES (190)
Courtney, Joe; Abercrombie, Neil; Ackerman, Gary; Andrews,
Robert; Arcuri, Mike; Baca, Joe; Baldwin, Tammy; Berkley,
Shelly; Bishop, Sanford; Bishop, Tim; Blumenauer, Earl;
Boccieri, John; Boren, Dan; Boswell, Leonard; Boucher, Rick;
Brady, Robert; Braley, Bruce; Brown, Corrine; Capps, Lois;
Capuano, Michael; Cardoza, Dennis; Carnahan, Russ; Carson,
Andre; Chandler, Ben; Christensen, Donna; Chu, Judy; Clarke,
Yvette; Clay, Lacy; Cleaver, Emanuel; Cohen, Steve; Conyers,
John; Costello, Jerry; Crowley, Joseph; Cummings, Elijah;
Dahlkemper, Kathy; Davis, Danny; Davis, Lincoln; DeFazio,
Peter; Delahunt, Bill; DeLauro, Rosa; Dicks, Norman; Dingell,
John; Doggett, Lloyd; Doyle, Mike; Driehaus, Steve; Edwards,
Donna; Ellison, Keith; Ellsworth, Brad; Engel, Eliot; Eshoo,
Anna; Farr, Sam; Fattah, Chaka; Filner, Bob.
Foster, Bill; Frank, Barney; Fudge, Marcia; Gonzalez,
Charles; Garamendi, John;
[[Page H5962]]
Grayson, Alan; Green, Al; Green Gene; Grijalva, Raul;
Gutierrez, Luis; Hall, John; Halvorson, Debbie; Hare, Phil;
Harman, Jane; Hastings, Alcee; Heinrich, Martin; Higgins,
Brian; Himes, Jim; Hinchey, Maurice; Hirono, Mazie; Hodes,
Paul; Holden, Tim; Holt, Rush; Honda, Mike; Inslee, Jay;
Israel, Steve; Jackson Jr., Jesse; Jackson-Lee, Sheila;
Johnson, Eddie Bernice; Johnson, Hank; Kagen, Steve; Kaptur,
Marcy; Kennedy, Patrick; Kildee, Dale; Kilpatrick, Carolyn
Cheeks; Kilroy, Mary Jo; Kucinich, Dennis; Langevin, James;
Larson, John; Lee, Barbara; Levin, Sander; Lewis, John;
Lipinski, Dan.
Loebsack, David; Lofgren, Zoe; Lowey, Nita; Lujan, Ben;
Lynch, Stephen; Maffei, Dan; Maloney, Carolyn; Markey,
Edward; Massa, Eric; Matsui, Doris; McCarthy, Carolyn;
McCollum, Betty; McDermott, Jim; McGovern, Jim; McMahon,
Michael; Meek, Kendrick; Meeks, Gregory; Michaud, Michael;
Miller, Brad; Miller, George; Mollohan, Alan; Moore, Dennis;
Moore, Gwen; Murphy, Chris; Murphy, Scott; Murtha, John;
Nadler, Jerrold; Napolitano, Grace; Neal, Richard; Norton,
Elanore Holmes; Oberstar, James; Olver, John; Ortiz, Solomon;
Owens, Bill; Pascrell, Bill; Pastor, Ed; Payne, Donald;
Perlmutter, Ed; Perriello, Thomas; Peters, Gary; Pingree,
Chellie; Quigley, Mike; Rahall, Nicek; Reyes, Silvestre;
Richardson, Laura; Rodriguez, Ciro; Ross, Mike.
Rothman, Steve; Royal-Allard, Lucille; Rush, Bobby; Ryan,
Tim; Salazar, John; Sanchez, Linda; Sanchez, Loretta;
Sarbanes, John; Schakowsky, Janice; Schauer, Mark; Schiff,
Adam; Schrader, Kurt; Schwartz, Allison; Scott, Bobby; Scott,
David; Serrano, Jose; Sestak, Joe; Shea-Porter, Carol;
Sherman, Brad; Shuler, Health; Sires, Albio; Slaughter,
Louise; Space, Zach; Speier, Jackie; Stark, Peter; Stupak,
Bart; Sutton, Betty; Teague, Harry; Thompson, Bennie;
Tierney, John; Titus, Dina; Tonko, Paul; Towns, Edolphus; Van
Hollen, Chris; Velazquez, Nydia; Visclosky, Peter; Walz, Tim;
Wasserman Shultz, Debbie; Waters, Maxine; Watson, Diane;
Weiner, Anthony; Welch, Peter; Wexler, Robert; Wilson,
Charlie; Woolsey, Lynn; Wu, David; Yarmuth, John.
Mr. KELLY of Pennsylvania. Madam Speaker, I yield 2 minutes to the
gentleman from California (Mr. Nunes).
Mr. NUNES. Madam Speaker, I thank Mr. Kelly for giving me time to
speak in support of H.R. 748, the Middle Class Health Benefits Tax
Repeal Act of 2019. This bill will provide much-needed relief from one
of the most burdensome and blunt taxes in ObamaCare.
By repealing this tax, we will save employers from paying a 40
percent tax on high-cost employer-sponsored health coverage. The bill
will provide much-needed relief not only for employers but for
employees, some of whom are low-income earners with high-cost health
benefits who are forced to bear the repercussions of this tax.
That said, I am disappointed that the majority chose not to repeal
the medical device tax or the health insurance tax, both of which are
harming hardworking Americans across the country.
The medical device tax is a 2.3 percent excise tax on the value of
medical devices sold domestically. Making lifesaving products more
expensive is not good policy and should be included in this repeal
bill.
The health insurance tax, or HIT, is a more than $100 billion sales
tax on private health insurance that affects every private plan in the
country. At a time when we are all trying to lower the cost of
healthcare, why are the Democrats in the majority preventing us from
removing this unnecessary and burdensome tax?
This bill could do so much more, but I am happy that the majority is
finally admitting that the ObamaCare tax increases are bad for the
country and that good tax policy doesn't need to be replaced with more
bad tax hikes.
At a time when much of our healthcare system is failing, when
healthcare costs are still unaffordable for many, when Medicare will be
insolvent within a decade, and when Medicaid's uncontrollable costs are
bankrupting our States, it still leaves millions of low- and middle-
income earners without access to doctors. We should be working harder
to provide more access and choice to the American people in a fiscally
responsible way.
Madam Speaker, I support the repeal of this tax, and I urge adoption
of the bill.
Ms. DelBENE. Madam Speaker, I yield 1 minute to the gentleman from
Connecticut (Mr. Larson).
Mr. LARSON of Connecticut. Madam Speaker, I commend my colleague on
the Ways and Means Committee, Mike Kelly, for his hard work and
diligence in bringing this bill to the floor, as he acknowledged, in a
bipartisan way.
I think the gentleman and everybody in this body understand and
respect the persistence, hard work, and dedication of Joe Courtney.
From its introduction and inception, from its first letter to its more
than 370 sponsors, ultimately, he has demonstrated that, yes, in this
body, we can arrive at solutions across the aisle, working together in
the common interest of every American citizen.
Joe Courtney was chairman of the Public Health Committee in the
Connecticut Legislature. He has forgotten more about these programs
than most people will ever remember. But it is his diligence,
persistence, and ability to work across the aisle that has brought this
legislation here today to be passed unanimously.
Mr. KELLY of Pennsylvania. Madam Speaker, I yield 2 minutes to the
gentleman from Kansas (Mr. Estes).
Mr. ESTES. Madam Speaker, I rise today in support of H.R. 748, the
Middle Class Health Benefits Tax Repeal Act of 2019.
This important bill repeals the so-called Cadillac tax, a policy
implemented through ObamaCare that would have placed a 40 percent tax
on high-cost employer healthcare plans.
The tax was originally included as a way to help pay for the Patient
Protection and Affordable Care Act, commonly called ObamaCare, by
targeting expensive health plans and insurance companies. However, in
practice, it would have been middle-class workers bearing the real
burden to pay for it through taxes. It would have hurt union members,
nonunion members, small businesses, and nonprofits.
In fact, the Joint Committee on Taxation and the Congressional Budget
Office predicted that a whopping 70 percent of the revenue collected by
the Cadillac tax would have come from higher income and payroll taxes
rather than excise taxes on insurers.
This massive tax increase would have devastated middle-class workers
and families, many of whom continue to struggle with the rising costs
of ObamaCare as it is.
I thank my colleagues for realizing the bad implications of this
failed policy and for working in a bipartisan way to repeal the
Cadillac tax.
I am hopeful that today's action will allow us to move forward to
address similar policies, like the health insurance tax and the medical
device tax.
Instead of propping up the failed Patient Protection and Affordable
Care Act through higher taxes and reduced choices, we must get serious
about improving healthcare and our economy.
Madam Speaker, I believe H.R. 748 is a great first step, and I urge
my colleagues to support it.
Ms. DelBENE. Madam Speaker, I yield 1\1/2\ minutes to the gentleman
from New Jersey (Mr. Pascrell).
Mr. PASCRELL. Madam Speaker, I include the letters that I have in my
hand in the Record.
International Federation of Professional & Technical
Engineers, AFL-CIO & CLC,
Washington, DC, July 15, 2019.
Dear Representative: On behalf of 90,000 workers
represented by the International Federation of Professional
and Technical Engineers (IFPTE), we are writing to urge you
to vote for the passage of H.R. 748, the Middle Class Health
Benefits Tax Repeal Act. This important bipartisan
legislation repeals the 40 percent ``Cadillac Tax'' on high-
cost employer-sponsored health care plans--set to take effect
in 2022--that millions of working and retired Americans
depend on.
Since the 40 percent excise tax was enacted as part of the
Patient Protection & Affordable Care Act, out of pocket
health care costs have continued to increase faster than
wages. At the bargaining table, workers in all sectors of the
economy are accepting lower or no pay increases, and cuts to
other important benefits in exchange for an employer-provided
health benefit that is both affordable and meets the health
needs of their families. If this tax is not repealed,
millions of workers and retirees will see the gains from
these tradeoffs fall by the wayside, while the underlying
issues driving health care costs will go unaddressed.
Analysis by the Congressional Research Service and the
Congressional Budget Office shows that the costs of this tax
will be passed onto workers in the form of lower wages,
reduced benefits, and the loss of coverage options. Even
though the excise tax has not taken effect yet, it has
already affected the benefits and quality of employer-
sponsored health insurance. Employers themselves admit that
they have little appetite for providing a health care
benefits that could end up triggering the 40% excise tax. In
anticipation of the tax's original effective date in 2018,
the American Health Policy Institute reported in 2015 that
``Almost 90 percent of large employers are taking steps to
[[Page H5963]]
try to prevent their company from having a plan that triggers
the excise tax.'' In the federal sector, the OPM's Federal
Employees Health Benefits Program carrier guidance tells
insurance companies to design plans to avoid triggering the
excise tax.
If the excise tax is allowed to take effect, it will
further burden working families instead of addressing the
factors that continue to drive up the cost of health care. As
it stands, the excise tax will go into effect in 2022 on
plans that exceed annual limits of $11,500 for individual
coverage and $31,100 for family coverage and will be chained
to inflation. By and large, plans that will be subject to the
excise tax have high costs not due to generous benefits, but
because of demographic factors, geographic disparities,
market concentration, and risk pool size.
H.R. 748 has board support from affected stakeholders,
including unions, public and private sector employers, health
advocacy organizations, and health insurance providers.
Today, a bipartisan majority in the House recognizes that the
excise tax will result in reduced health benefits and
coverage options, lower wages and pension benefits, hurt
employers who are trying to provide competitive benefits to
employees, while failing to address the real cost drivers in
the health care system.
Therefore, we urge you to vote for H.R. 748.
Sincerely,
Paul Shearon,
President.
Matthew Biggs,
Secretary-Treasurer/Legislative Director.
____
International Association of Machinists
and Aerospace Workers,
Upper Marlboro, MD, July 15, 2019.
Dear Representative: On behalf of the International
Association of Machinists and Aerospace Workers (1AM), I
strongly urge you to support working families and vote
``Yes'' on the bipartisan Middle Class Health Benefits Tax
Repeal of 2019, H.R. 748. This vital legislation introduced
by Representatives Joe Courtney (D-CT) and Mike Kelly (R-PA)
would rightly repeal the 40% health benefits tax on employer-
sponsored healthcare before working Americans and their
families are further impacted by this onerous tax.
In a time where so many Americans are feeling the pinch of
rising healthcare costs, the so-called ``Cadillac Tax'', as
it is commonly known, is a gut punch directed squarely at the
middle class and working families. Despite several delays in
its implementation, millions of Americans are already feeling
the impact of the 40 percent health benefits tax. They feel
its impact at the doctor's office and at the bargaining table
as employers increase deductibles, reduce benefits, and drop
plan options to prepare for the tax's looming threat. In
order to halt its harmful repercussions on American workers,
the tax must not simply be further delayed, but swiftly
repealed.
Originally, the 40% health benefits tax was intended only
to be levied only on ``gold-plated'' health insurance plans
with very rich benefits. However, the realities of continued
medical cost inflation, an aging workforce, and new medical
technologies are pushing the cost of even modest plans above
the tax's threshold. We also know that the impact of the tax
would disproportionately burden certain demographics that
often face higher healthcare premiums. Plans hit by the tax
often cover more female employees, more workers with
dependent children, more senior workers, employees at smaller
businesses, and employees with physically demanding jobs.
To be clear, it is not employers or insurance companies who
will end up shouldering the tax's burden; it is workers and
middle-class families who end up floating the bill for this
regressive tax. Researchers at CUNY School of Public Health
found the 40 percent health benefits tax will
``disproportionately harm families with incomes between
$38,550 and $100,000, while sparing the wealthy''. This tax
will only serve to increase healthcare costs and reduce
benefits for working Americans in a time where they simply
cannot afford to pay more for less coverage.
For all of these reasons, I urge you to support working
families and vote ``Yes'' on H.R. 748, the Middle Class
Health Benefits Tax Repeal of 2019.
Thank you,
Robert Martinez, Jr.,
International President.
____
International Brotherhood
of Teamsters,
Washington, DC, July 15, 2019.
House of Representatives,
Washington, DC.
Dear Representative: This week, the House of
Representatives will consider H.R. 748, the Middle Class
Health Benefits Tax Repeal Act of 2019. On behalf of the more
than 1.4 million members of the International Brotherhood of
Teamsters, I ask you to vote yes on H.R. 748. This bipartisan
legislation would repeal the excise tax on high value
employer sponsored health insurance (ESI), often referred to
as the ``Cadillac Tax''.
The Teamsters have long opposed proposals that tax worker
health benefits. Attempts to tax employer provided health
care benefits through the 40 percent excise tax on high
quality health care plans reduce the health benefits that
hard working Americans receive and increase their out of
pocket costs. Policy makers should not penalize, with an
egregious tax, employers that do the right thing and provide
high value health insurance to their workers.
More than 181 million people (a majority of the country)
receive employer sponsored insurance. While the tax is
``levied'' on employers, experts expect costs largely to be
shifted to workers and their families. And, it is
unconscionable that hard working Americans will continue to
have this 40 percent penalty on benefits that they have
fought hard to achieve/receive looming over them. While this
tax does not take effect until 2022, having twice been
delayed by Congress, this egregious tax is already hollowing
out the benefits of working people who have employment-based
coverage. Indeed, employers are already scaling back their
health care benefits and offerings, and/or increasing
workers' out of pocket costs.
In recent years, deductibles and out of pocket costs of ESI
plans have risen considerably, while costs continue to grow.
According to the CUNY School of Public Health research, the
health benefits tax predominantly impacts the middle class.
Congress should be looking for ways to strengthen the middle
class instead of promoting policies that will ultimately take
money from their hard earned paychecks and reduce, and make
more costly, the health care benefits they receive.
I call on you to support the full and permanent repeal of
the so-called ``Cadillac Tax''. I hope that I can report to
our members that you stood with the International Brotherhood
of Teamsters family to pass this important legislation. Vote
yes on H.R. 748.
Sincerely,
James P. Hoffa,
General President.
____
International Association
of Fire Fighters,
Washington, DC, July 16, 2019.
Dear Representative: The International Association of Fire
Fighters represents more than 316,000 professional fire
fighters and emergency medical personnel, working in every
state in the nation. We strongly support the bipartisan
Middle-Class Health Benefits Tax Repeal Act of 2019 (HR 748)
and request that you vote YES this Wednesday when it is
considered under suspension of the rules.
Voting yes on HR 748 would repeal the 40 percent tax on
employer-provided health insurance and protect the healthcare
that so many public safety workers have fought to get and
protect.
This ill-conceived tax was originally sold to lower and
slow the rate of healthcare costs. What the tax actually does
is shift more costs onto consumers through higher
deductibles, copays and coinsurance. Taxing health plans with
high premiums will do nothing to drive down costs because the
real drivers of those costs are age, gender and geography. As
a result, this tax will punish fire fighters based on who
they work with or where they live, and that is both bad
policy and unfair to workers.
Proponents of the tax argued it would only target the
richest Americans, but that too turned out to be untrue. Most
plans that would fall victim to this tax cover working class,
middle-income Americans. Fire fighters in particular, fall
into this category. The dangerous nature and high risks
associated with working in the fire service make fire
fighters' health plans critically important; workers will
often choose to protect their health care over increased pay.
Taxing health benefits will undermine an integral component
of our health care system. One of the primary reasons why
most Americans receive health care coverage through their
employer is owed to the fact that their benefits are not
taxed. At the risk of weakening health benefits, depressing
wages and burdening workers with higher taxes, we should not
support policies that tax health care for American workers.
While the tax does not go into effect until 2022, the IAFF
seeks its immediate repeal. Many of our members negotiate
multi-year contracts that are directly impacted by the
eventual implementation of this tax. The time for incremental
relief is over. Congress must pass HR 748 and fully repeal
the excise tax on employer-provided health insurance.
When the House votes tomorrow on this measure, I ask that
you stand with all public safety workers and vote YES. Thank
you for your considered support on this important issue.
Respectfully,
Harold A. Schaitberger,
General President.
____
International Union
of Operating Engineers,
July 16, 2019.
Hon. Nancy Pelosi,
Washington, DC.
Hon. Kevin McCarthy,
Washington, DC.
Dear Speaker Pelosi and Leader McCarthy: On behalf of
400,000 members of the International Union of Operating
Engineers and their families, I respectfully request that you
support H.R. 748, the Middle Class Health Benefits Tax Repeal
Act of 2019.
The International Union of Operating Engineers (IUOE)
represents nearly 400,000 working men and women in the United
States and Canada, thousands of whom would be affected by
this 40% tax on high-cost health insurance premiums.
As you know, Congress has acted twice to delay this tax--
its current effective date is
[[Page H5964]]
January 1, 2022--but multi-year collective bargaining
negotiations are now underway and the uncertainty surrounding
the possible imposition of the tax is already pushing
employers to hollow out the health-care benefits of their
workers. The excise tax on high-premium health plans should
be permanently repealed.
Proponents of the tax argued that it would incentivize
employers to move away from ``overly generous'' health care
coverage. They argued that forcing workers to have more
``skin in the game'' would reduce ``overutilization'' of
health care services, forcing people to consider the
financial implications of seeking care. Surveys of employers
over the years have shown that they have reduced coverage
under their health plans in anticipation of the tax. The tax,
however, would have no effect on a ``unit cost'' of health
care.
In the decade since the tax was enacted, it is clear that
the health care affordability crisis now affects millions of
individuals with employment-based coverage. From 2008-2018,
the general annual deductible for family coverage has
increased 212 percent, while workers' earnings have only
increased 26 percent. This tax is clearly having a negative
impact on working families, and its repeal is overdue.
The International Union of Operating Engineers supports
H.R. 748 and respectfully requests that you repeal the tax on
high-cost health insurance premiums as quickly as possible.
We believe that permanent repeal of the 40-percent tax should
be a top priority for this 116th Congress, and we look
forward to working with you to enact it into law.
Thank you for your leadership on this vital issue for
Operating Engineers and their families.
Sincerely,
James T. Callahan,
General President.
Mr. PASCRELL. Madam Speaker, I support this legislation, H.R. 748.
During our discussions on health reform in 2009, many of us strongly
opposed the excise tax on so-called Cadillac employer-provided health
plans. We were successful in keeping it out of the House version of the
bill, but we all know it ended up in the final bill. It has been
delayed since then, but now it is enactment time. This is imminent. We
need to do something now.
The Cadillac tax would impact employers and families whose health
insurance plans cost more than $11,100 for an individual and $29,750
for family coverage. This is not a small universe, and the effects will
be highly negative.
If we do nothing, this tax would fall squarely on employees,
encouraging employers to shift away from tax-free health benefits to
taxable wages.
As deductibles have risen more than 200 percent in the employer-
sponsored insurance plans, the cost of care has continued to grow while
wages remain flat. We must ensure that employers can continue to
provide high-quality healthcare.
I urge my colleagues to support the bipartisan repeal of the Cadillac
tax.
Mr. KELLY of Pennsylvania. Madam Speaker, I yield 2 minutes to the
gentleman from Indiana (Mr. Banks).
Mr. BANKS. Madam Speaker, this is a historic day. We have finally
found a tax that Members and my friends on both sides of the aisle
agree needs to be cut.
I am proud to be a cosponsor of today's legislation, and I am excited
that many of my colleagues on the other side of the aisle as well are
prepared to get rid of this destructive tax that was put in place by
ObamaCare.
{time} 1645
But while we are at it, while we are repealing ObamaCare taxes, we
should include an equally destructive tax in today's repeal: the
medical device tax.
I am very proud to serve the residents of Warsaw in northeast
Indiana, the region that is often referred to as the orthopedic capital
of the world. Unfortunately, companies in my district and all across
this country have been needlessly hampered by the inability of this
Congress to fully and permanently repeal the onerous medical device
tax. When it was enforced, this tax destroyed 29,000 jobs and caused a
$34 million reduction in investments in lifesaving research and
development.
So today, while we are here voting on this bipartisan legislation to
repeal the Cadillac tax, I ask that all Members of this body be equally
mindful in moving swiftly to also repeal the medical device tax.
Ms. DelBENE. Madam Speaker, I yield 1\1/2\ minutes to the gentleman
from Illinois (Mr. Danny K. Davis).
Mr. DANNY K. DAVIS of Illinois. Madam Speaker, I strongly support
this bill to eliminate the 40 percent tax on high-quality healthcare
benefits.
Americans are facing a healthcare affordability crisis. Employers and
insurers are already using this tax to justify raising the cost of
healthcare for hardworking Americans by increasing copays, deductibles,
and out-of-pocket expenses.
In the last decade, annual deductibles for families have exploded by
212 percent, and spending on coinsurance has increased nearly 50
percent. A Kaiser Family survey reveals that these changes create
alarming barriers to healthcare for working families, with almost 50
percent of respondents indicating that someone in their family
postponed care due to costs.
I stand with the 43 national labor unions and the dozens of patient
organizations, healthcare advocates, and business leaders who support
this important bill to protect healthcare benefits for American
workers. Healthcare is a right. I am pleased to support this bill.
Mr. KELLY of Pennsylvania. Madam Chair, may I inquire how much time
is left.
The SPEAKER pro tempore. The gentleman from Pennsylvania has 9\1/2\
minutes remaining. The gentlewoman from Washington has 10\1/2\ minutes.
Mr. KELLY of Pennsylvania. I reserve the balance of my time.
Ms. DelBENE. Madam Speaker, I include in the Record letters of
support for H.R. 748.
The ERISA Industry Committee,
Washington, DC, July 15, 2019.
Dear Member of Congress: This week, the House is expected
to vote on H.R. 748, the ``Middle Class Health Benefits Tax
Repeal Act of 2019.'' The ERISA Industry Committee (ERIC) is
the only national trade association that advocates
exclusively for large employer plan sponsors on health,
retirement, and compensation public policies on the federal,
state, and local levels. ERIC member companies employ workers
in every state and community and provide health coverage that
is valued and relied upon by families across the country.
ERIC urges members of Congress to vote YES and support this
legislation.
H.R. 748, supported by more than 360 cosponsors in the
House, would eliminate the impending 40% ``Cadillac'' excise
tax on high-cost employer-sponsored health insurance. The tax
does not target overly-generous benefits; instead, it attacks
plans based upon their costs. As such, plans that insure more
individuals with chronic conditions, more seniors, more
women, and populations more likely to incur health care costs
will be unfairly taxed at an unsustainable rate--as will
those based parts of the country where health care is more
expensive.
If Congress fails to repeal the Cadillac tax, employers may
have to:
Directly shift costs to employees. This could include
increasing the portion of the plan premium employees pay,
increasing deductibles, copays and coinsurance.
Eliminate employer contributions to consumer-directed
accounts. This includes Health Savings Accounts (HSAs),
Health Reimbursement Arrangements (HRAs), or Flexible
Spending Accounts (FSAs).
Reduce access to care. This includes tightening networks
and excluding high-cost providers, implementing barriers to
high cost treatments and providers (step therapy, prior
authorization), moving expensive medicines deeper into Rx
formularies, and eliminating coverage for some medications.
Eliminate coverage for spouses and dependents, and separate
out or eliminate excepted benefits. These include dental,
vision, hospital indemnity, cancer-only, or other ``add-on''
benefits.
Drastically redesign plans. For instance, ending preferred
provider organization (PPO) or similar plans, and
implementing a high-deductible health plan (HDHP) or a health
maintenance organization (HMO).
Eliminate investments in health. Investments that plan
sponsors make to improve health may save money later, but the
costs of those investments could be considered to add value
to the plan. As such, plans may consider eliminating on-site
clinics, wellness programs, telehealth benefits, health
information technology investments, and other health
improvement efforts that have up-front costs.
As we have previous reported to Congress, the Cadillac tax
is an existential threat to employer-sponsored health
benefits. Repealing the Cadillac tax is ERIC's top priority
on behalf of our member companies. While employers support
efforts to reduce health care costs, a tax on benefits will
do the opposite, making health insurance less affordable for
workers, their families, and retirees.
As such, when H.R. 748 comes to a vote, ERIC urges members
to vote YES. We look forward to working with Congress to
finally repeal this damaging tax, to ensure affordability of
health benefits for patients.
Sincerely,
James P. Gelfand.
[[Page H5965]]
____
American Benefits Council,
Washington, DC, July 14, 2019.
Hon. Nancy Pelosi,
Speaker of the House, House of Representatives,
Washington, DC.
Hon. Kevin McCarthy,
Minority Leader, House of Representatives,
Washington, DC.
Dear Speaker Pelosi and Leader McCarthy: We are very
gratified that the Middle Class Health Benefits Tax Repeal
Act (H.R. 748) will be voted upon shortly in the House of
Representatives. This widely bipartisan measure sponsored by
Representatives Joe Courtney and Mike Kelly would fully and
immediately repeal the 40 percent ``Cadillac Tax'' that
threatens the high-value, high-quality health coverage that
181 million Americans receive through employers. We ask that
you strongly urge the members of your respective caucuses to
support this measure. Passage of H.R. 748 with a large
bipartisan majority will send a powerful signal to the Senate
of the need to quickly approve this legislation.
The American Benefits Council's members either directly
sponsor or support sponsors of health and retirement benefits
for virtually all Americans covered by employer-provided
plans. Consequently, we are keenly aware of the drastic
impact the ``Cadillac Tax'' would have on health care
benefits. We have already witnessed some of the negative
consequences, even though the tax does not technically go
into effect until 2022.
Starting that year, a 40 percent excise tax will be imposed
on employer-sponsored coverage that exceeds certain dollar
thresholds. For millions of Americans who rely upon health
insurance coverage through an employer, the looming
implementation of the tax has already resulted in reduced
coverage and increased out-of-pocket costs. The reason for
this is, to ensure the impact of the tax on participants is
not imposed suddenly and severely in 2022, many employers
have already reluctantly been compelled to make plan changes:
reducing important benefits or asking workers to assume a
larger share of deductibles and copayments. This trend will
accelerate without swift action by Congress.
____
AGC Key Vote: Vote ``Yes'' on H.R. 748, the Middle Class Health
Benefits Tax Repeal Act of 2019
July 16, 2019.
Dear Representative: On behalf of the Associated General
Contractors of America (AGC), I write to urge you to support
the Middle Class Health Benefits Tax Repeal Act (H.R. 748).
This bipartisan legislation would repeal the 40 percent
excise tax on employer-sponsored health coverage and employee
benefits under the Affordable Care Act (ACA). Because
ensuring the ability to provide affordable health care is a
critical issue for the construction industry, AGC reserves
the right to record your vote on this bill as a ``key vote''
for the education of its membership.
The 40 percent excise tax, also known as the ``Cadillac
tax,'' would force contractors to cut or limit employee
benefits for millions of employees. Though dubbed the
Cadillac tax because the provision was targeting ``high
cost'' employer-sponsored health coverage, it is causing an
adverse effect on the affordability and quality of health
coverage available to construction employees and their
families even before it has taken effect.
While we appreciate prior delays of this tax, uncertainty
remains in the employer health market as the U.S. Treasury
Department begins to develop proposed rules for
implementation. As construction employers make health plan
decisions well in advance of a coverage year beginning,
looming proposed rules have a direct impact on their planning
process for the next several coverage years.
AGC supports the affordability and viability of providing
employersponsored coverage now and in the future. As such,
the 40 percent excise tax should be permanently repealed.
Again, AGC reserves the right to record your vote as a ``key
vote'' for the education of its membership.
Sincerely,
Jimmy Christianson,
Vice President, Government Relations.
____
National Business Group on Health,
July 16, 2019.
Hon. Joe Courtney (D-CT)
Washington, DC.
Hon. Mike Kelly (R-PA)
Washington, DC.
Dear Representatives Courtney and Kelly: The National
Business Group on Health (Business Group) again writes in
strong support of your bipartisan bill (H.R. 748) that would
eliminate the 40 percent tax on the value of health benefits
above a government-determined amount imposed by the Patient
Protection and Affordable Care Act (ACA), commonly referred
to as the ``Cadillac Tax''. Any tax that raises the cost of
health benefits will harm the more than 181 million Americans
who rely on and value employer-sponsored health coverage.
Even though the Cadillac Tax is delayed to 2022, the Business
Group urges the 116th Congress to pass this important
bipartisan legislation early in 2019 to provide permanent
relief and clarity to employees that this fundamentally
flawed tax will not impact their health benefits.
According to our survey data, absent plan changes, 73% of
companies who responded will have at least one plan that
triggers the tax in 2022 and 94% will in 2026. In a few short
years, if the tax is not repealed, it will affect nearly 100%
of employer plans since the tax is indexed to general
inflation, not medical inflation, which is consistently much
higher.
Furthermore, the National Business Group on Health, which
represents 440, primarily large, employers (including 75 of
the Fortune 100) who voluntarily provide health benefits and
other health programs to over 55 million American employees,
retirees, and their families, believes that not only is this
tax flawed, it is also not the most effective way to tackle
rising health care costs. Rather than focus on demand-side
taxes that will raise costs for working Americans and their
employers, Congress should focus on supply-side drivers of
medical inflation and unnecessary.
Sincerely,
Brian J. Marcotte,
President and CEO.
____
National Coalition on Benefits,
July 17, 2019.
To the Members of the U.S. House of Representatives: The
National Coalition on Benefits (NCB), a coalition of
businesses and associations committed to protecting the
ability of employers to provide uniform employee health
benefits across the country, strongly supports the passage of
H.R. 748, the ``Middle Class Health Benefits Tax Repeal Act
of 2019.'' This legislation would repeal the looming
``Cadillac Tax,'' a 40 percent excise tax imposed on employee
health benefits above a certain threshold.
Employers strongly support the full repeal of the Cadillac
Tax because this tax inevitably forces the reduction of
employee benefits and, because of the flawed indexing
provisions of the underlying Affordable Care Act, this tax
will affect most plans in a few years, even those with
reduced benefits. Employers devise benefit plans two years in
advance of the actual plan year. As a result, employers are
being forced now to reduce employee benefits in order to
avoid the impending reach of the Cadillac Tax.
Working Americans don't want their health benefits taxed at
a time when they're already confronting higher premiums and
out-of-pocket costs. Indeed, a 2018 election night poll,
conducted by pollster Frank Luntz, highlights that 81 percent
of voters oppose taxes on employer-provided health coverage.
The Cadillac Tax presents a direct threat to the more than
181 million Americans who rely on employer-sponsored coverage
to meet their health care needs. The NCB thanks Reps. Joe
Courtney and Mike Kelly for their dogged and unwavering
commitment to repealing this onerous tax on employee benefits
and urges the House to approve H.R. 748.
Sincerely,
National Coalition on Benefits.
____
Dear Representative: On behalf of NFIB, the nation's
leading small business advocacy organization, I write in
support of H.R. 748, the Middle Class Health Benefits Tax
Repeal Act of 2019. This legislation repeals the 40 percent
excise tax on employer-sponsored health insurance, also known
as the ``Cadillac tax.'' This bill will be considered an NFIB
Key Vote for the 116th Congress.
The cost of health insurance continues to be the number one
problem for small business owners, according to NFIB's
Problems and Priorities survey. As health insurance costs
increase, fewer small business owners are able to offer
coverage to employees. In 2010, 39 percent of small
businesses offered health insurance. In 2018, fewer than 30
percent of small businesses offered coverage, a net decrease
of 24 percent. The Cadillac tax will exacerbate this trend.
Health insurance cost increases will accelerate as more small
businesses are subject to the Cadillac tax.
The Cadillac tax will also be an administrative nightmare
for small business owners. Early guidance from the Internal
Revenue Service (IRS) proposed requiring small business
owners to calculate their tax liability, notify the IRS and
health insurers of their tax liability, and remit the tax
liability to the health insurers. Small business owners do
not have time or resources for significant new compliance and
reporting burdens.
NFIB supports passage of H.R. 748 and will consider a vote
in favor of the legislation as an NFIB Key Vote for the 116th
Congress. H.R. 748 will help mitigate health insurance cost
increases and relieve administrative burdens for small
business owners and employees. We look forward to working
with you to protect small business as the 116th Congress
moves forward.
Ms. DelBENE. Madam Speaker, I yield 1\1/2\ minutes to the gentlewoman
from California (Ms. Sanchez).
Ms. SANCHEZ. Madam Speaker, I rise in support of the Middle Class
Health Benefits Tax Repeal Act, and I want to thank Chairman Neal and
Mr. Courtney for their tireless efforts to get this legislation passed.
I have been proud to support the repeal of the Cadillac tax for many
years. Last Congress, I offered an amendment to repeal the tax during
the healthcare repeal and replace debate.
It is important to remember that the Cadillac tax does not just
affect high-value plans. If Congress does not act, the tax will hit
hardworking Americans and their families who receive employer-sponsored
insurance. Employers
[[Page H5966]]
have already started shifting costs to their workers in anticipation by
increasing deductibles, copays, and coinsurance.
Congress has voted twice to delay the tax, but now is the time to
officially repeal it. I am pleased that we are finally taking this vote
today. I look forward to passage today and will keep working to
strengthen and protect America's healthcare.
I include in the Record letters from CWA, UAW, AFSCME, AFT, and AFGE
and the AFL-CIO in support of this bill.
Communications Workers of America,
July 15, 2019.
Dear Representative Neal: On behalf of the officers and
700,000 members of the Communications Workers of America
(CWA), I am writing to urge you to vote in favor of H.R. 748,
the Middle Class Health Benefits Tax Repeal Act of 2019, when
it comes before the House this week.
This bill will permanently repeal the 40% tax on employer
health benefits which is currently scheduled to take effect
in 2022. It will provide relief to our members, and working
people everywhere, whose health benefits are under continual
attack by employers looking to shift the cost of care to
workers.
A recent study by the Commonwealth Fund found that the
number of Americans who are underinsured as a result of high
out-of-pocket costs and deductibles has grown by over 50%
since 2010. The fastest growth in under-insurance has come
from Americans with employer-provided coverage.
This is consistent with our members' experience at the
bargaining table, where fights to preserve affordable
coverage and prevent plan cuts dominate our negotiations at
every employer. The 40% benefit tax will exacerbate this
trend and force cuts across our health plans, making health
care less affordable.
Our members are currently negotiating agreements with
employers that extend to 2022. Current data indicates many of
our largest member health plans will be subject to this tax
immediately when it goes into effect that year. That is why
action now to resolve this issue now is critical.
H.R. 748, the Middle Class Health Benefits Tax Repeal Act,
will improve health care for working people across the
country, providing relief to workers who are paying high
prices for their negotiated healthcare. CWA will consider
votes on this bill on our Congressional Scorecard.
Thank you in advance for your consideration.
Sincerely,
Shane Larson,
Director of Legislative, Political and International Affairs.
____
International Union, United Automobile, Aerospace &
Agricultural Implement Workers Of America--UAW
Detroit, MI, July 16, 2019.
Dear Representative: On behalf of the more than one million
active and retired members of the International Union, United
Automobile, Aerospace & Agricultural Implement Workers of
America (UAW), we urge you to vote yes on the Middle Class
Health Benefits Tax Repeal Act (H.R. 748). This bill would
permanently repeal the excise tax on high cost employer-
sponsored health coverage. The tax is scheduled to be levied
on the aggregate amount of employer-sponsored coverage
exceeding thresholds established in the law ($11,200 for
individual coverage and $30,100 for family coverage). The
excise tax is currently set to take effect in 2022.
The UAW believes affordable comprehensive health care
should be a right for every American. That is why we strongly
support the Affordable Care Act (ACA) and vehemently oppose
all efforts to repeal the law. The ACA has made important
strides towards the goal of universal, comprehensive,
affordable coverage. In fact, since its passage in March
2010, more than 20 million people have gained health care
coverage. In addition, tens of millions more with preexisting
conditions have been able to get affordable and comprehensive
insurance because discriminating against people with pre-
existing conditions is prohibited under the ACA. Workers with
employer sponsored coverage have benefited from this and
other protections, like the prohibition on lifetime caps,
found in the law. Without these protections, unionized
workers would have to collectively bargain for these
essential, common sense protections.
Like any comprehensive law, the ACA needs to be refined and
repealing the scheduled tax on employer sponsored coverage
would improve our health care system.
As the Congressional Budget Office (CBO) and prominent
economists have predicted, employers have responded to the
impending tax by increasing worker's deductibles, copays,
and/or coinsurance in order to avoid being hit by the tax.
Employers have increased cost sharing under their plans,
switched to lower cost benefits, eliminated plan options, or
narrowed provider networks in anticipation of the tax,
according to a 2016 national survey of employers conducted by
the Kaiser Family Foundation.
The percentage of employers with a plan reaching the
threshold is projected to grow fairly rapidly over time, to
28% in 2025 and 37% in 2030.
If Congress fails to act, working families will be
negatively impacted as employers turn to a range of options
to avoid the tax by reducing the value of health care
coverage, which could include increasing deductibles, copays,
coinsurance and out-of-pocket limits. This tax places a
disproportionate burden on working families and makes health
care less affordable.
We urge you to vote in support of the Middle-Class Health
Benefits Tax Repeal Act (H.R. 748).
Sincerely,
Josh Nassar,
UAW Legislative Director.
____
AFSCME,
Washington, DC, July 16, 2019.
House of Representatives,
Washington DC.
Dear Representative: On behalf of the members of American
Federation of State, County and Municipal Employees (AFSCME),
I urge you to support passage of the bipartisan ``Middle
Class Health Benefits Tax Repeal Act of 2019'' (H.R. 748),
which would repeal the 40 percent (``Cadillac'') tax on
employer-sponsored high cost worker and retiree health
benefits. AFSCME strongly supports H.R. 748 to prevent
further increases in workers' health costs and erosion of
their health benefits.
Repealing the 40 percent tax is needed because it
encourages employers and insurers to reduce working families'
health benefits thereby raising medical copays, coinsurance,
deductibles, and related out-of-pocket health expenses.
AFSCME seeks immediate repeal because, while the tax does not
take effect until 2022, it already is reducing benefits--as
AFSCME (and other stakeholders) are already negotiating
multi-year contracts extending beyond early 2022. This tax is
troubling because it is regressive, disproportionately
burdens working families, and discriminates against female
dominated occupations like nurses and teachers. Groups of
workers who are relatively older, less healthy, or working
jobs with relatively high health risks will also suffer
additional health costs.
More broadly, America's health care system faces an
escalating affordability crisis and this 40 percent tax
worsens it. For example, the Congressional Budget Office
(CBO) analysis of this tax states, ``empirical evidence
suggest that it will be passed on to employers who purchase
or provide insurance that is subject to the tax--and then
ultimately passed on to workers.'' To help workers and
improve affordability, this 40 percent tax should be repealed
now. This tax also is a poorly targeted and ineffective tool.
It will soon affect tens of millions of working families and
recently released data reports 21 percent to 31 percent of
employers offering health benefits in 2022 will owe this tax.
Others estimate more large employers will owe this tax,
dispelling the myth that this tax only affects plans with
strong benefits.
H.R. 748 has diverse and broad support, including
endorsements from 43 national labor unions, many patient and
consumer organizations, such as Families USA, groups that
treat and cure diseases such as American Cancer Society
Cancer Action Network, and prominent business interests like
the U.S. Chamber of Commerce and Business Roundtable.
Furthermore, the public has opposed this tax for years and a
2018 Election Day poll reported 81 percent of voters oppose
taxing employer-provided health coverage. Repealing the 40
percent tax is a vital step to help make health care more
affordable. We urge you to support the bipartisan ``Middle
Class Health Benefits Tax Repeal Act,'' H.R. 748, and vote
yes on this important legislation.
Sincerely,
Scott Frey,
Director of Federal Government Affairs.
____
AFT,
Washington, DC, July 15, 2019.
House of Representatives,
Washington, DC.
Dear Representative: On behalf of the 1.7 million members
of the American Federation of Teachers, I urge you to vote
YES on H.R. 748, the Middle Class Health Benefits Tax Repeal
Act.
The AFT has always opposed the 40 percent excise tax on
high-quality healthcare plans, included in the Affordable
Care Act, which will negatively impact families that have
worked for, and earned, strong healthcare coverage. We have
been gratified that Congress has pushed back the
implementation date of this tax in the past. It is clear,
however, that full repeal of this excise tax is needed to
prevent employers from using the threat of the tax as a
cudgel to demand reduced benefits or coverage from educators,
nurses, bus drivers, social workers and other AFT members.
The AFT strongly supports the ACA's expansion of health
insurance, as well as the act's consumer protections and
emphasis on preventive care. We know firsthand that having
affordable, high-quality health insurance is a key component
to upward mobility and a sustainable middle class. Under
current law, the number of insured Americans is higher than
ever before; that includes the large number of contingent
workers we represent, who make up an increasing share of
today's workforce.
The ACA was intended to help ensure that we all have access
to high-quality healthcare without depleting our paychecks
and compromising our ability to save for the future. The
excise tax, rather than expanding high-quality healthcare,
would do the opposite. If
[[Page H5967]]
the 40 percent excise tax on the cost of employer-sponsored
health insurance plans is implemented, working families will
be hurt.
Some analysts argue that this tax will lead employers and
employees to seek out ``more efficient'' plans and perhaps to
an increase in wages. However, we have not seen an increase
in wages and remain concerned that workers will be moved to
high deductible/co-pay health plans as a result of this tax.
The cost curve will not bend; costs will simply be shifted
over to those lower- and middle-income workers already
struggling because of stagnant wages. This will lead to more
workers forgoing necessary care or going into debt to pay for
the high out-of-pocket costs.
In addition to having the potential to shift costs to
working families, the excise tax will disproportionately
affect older workers and women. This is of particular concern
to the AFT, as a substantial number of our members are
female, and many live in high-cost regions. Congress did
recognize the obvious impact on women and older workers by
trying to mitigate it with the ``age and gender adjustment''
provisions in the law. However, these provisions are
insufficient, and implementation of the tax would almost
certainly lead to higher healthcare costs for these groups.
There is near-universal agreement between employers and
employees that the excise tax is bad policy for American
workers, and must be repealed. That is why more than 360
members of the House have co-sponsored this much-needed,
bipartisan legislation. I urge you to join them and vote YES
on H.R. 748.
Finally, I want to thank Rep. Joe Courtney, who introduced
H.R. 748, for his relentless efforts and commitment to
repealing this counterproductive tax. His determination and
leadership on this issue have been remarkable, and our
members appreciate his dedication.
Thank you for considering our views on this important
matter.
Sincerely,
Randi Weingarten,
President.
____
American Federation of
Government Employees, AFL-CIO.
Dear Representative: On behalf of the more than 700,000
federal and District of Columbia employees represented by the
American Federation of Government Employees, AFL-CIO (AFGE),
I write to urge your support for the bipartisan ``Middle
Class Health Benefits Tax Repeal Act of 2019'' (H.R. 748)
which would eliminate the unfair and unwarranted 40 percent
tax on relatively high cost employer-sponsored health
insurance. We ask that you vote ``YES'' when the bill comes
to the floor later this week.
Most federal employees and federal retirees participate in
the Federal Employee Health Benefits Program (FEHBP). The
premiums for almost every plan that participates in FEHBP
would be hit by this tax, making a very expensive program
even more expensive for both taxpayers and participants.
FEHBP plans are expensive, and thus are subject to this tax,
not because the benefits they provide are so comprehensive,
but because the structure of FEHBP leads to high premiums.
FEHBP plans yield enormous political power to charge high
prices, escape audit by virtue of their exemption from
application of the government's cost accounting standards,
and are characterized by risk segmentation that raises their
premiums above the actuarial value of their benefits. Indeed,
the generosity of benefits is a relatively insignificant
factor in the overall size of FEHBP's premiums. Age, gender,
health status and program structure are the most important
factors in determining premiums, and premiums determine
whether a plan is subject to the tax.
The 40 percent excise tax is not scheduled to take effect
until 2022, so now is the time for repeal, before it has any
further deleterious effect on the working and middle class
families that are its targets. Support for repeal of this
regressive tax is widespread. There is no doubt that its
effect will be to make health insurance less affordable. That
is certainly true for federal employees and retirees whose
compensation has declined in real terms over the past decade
due to pay freezes and retirement benefit reductions. AFGE
strongly urges you to support H.R. 748, the ``Middle Class
Health Benefits Tax Repeal Act of 2019.''
Sincerely yours,
J. David Cox, Sr.
Ms. DelBENE. Madam Speaker, I yield 1 minute to the gentlewoman from
California (Ms. Judy Chu).
Ms. JUDY CHU of California. Madam Speaker, I rise in support of H.R.
748, repealing the so-called Cadillac tax.
I believe that we in Congress should be incentivizing employer-
sponsored insurance to be more generous, not less; and at a time when
the President is working to dismantle the Affordable Care Act and
pushing through regulations that allow junk plans to flourish, we need
to stand with American workers and fight for more generous health
plans.
The plans that are hit by this tax cover more female employees, more
workers with dependent children, more older workers, and employees at
small businesses. These are the people who are being hit by high
deductibles, rising premiums, and more cost sharing in the health
system than ever before.
A recent study showed that in 2018, 58 percent of Americans do not
have $1,000 of savings in case of an emergency, and yet the average
deductible in 2018 was $1,350.
We must pass this bill.
I include letters of support for H.R. 748 into the Congressional
Record from organizations such as the Alliance for Retired Americans,
the Alliance to Fight the 40, and the College and University
Professional Association for Human Resources.
Alliance for Retired Americans,
Washington, DC, July 15, 2019.
Dear Representative: On behalf of the 4.4 million members
of the Alliance for Retired Americans, I am writing to urge
you to vote in favor of H.R. 748, the Middle Class Health
Benefits Tax Repeal Act, when it comes up for a vote on the
House floor this week.
As you know, approximately 181 million Americans rely on
employer-provided health insurance to pay for the medical
care that they need. The 40% excise tax, originally passed as
a part of the Affordable Care Act, is assessed on any health
plan that provides more than $10,200 for individual coverage
and $27,500 for family coverage.
While intended to target high-premium plans for the wealthy
to expand benefits and coverage for uninsured individuals,
the tax squarely affects middle class workers and their
families. Johns Hopkins University researchers projected that
75% of employer-sponsored plans will be affected by the tax.
Retirees are especially vulnerable to higher health care
costs and will be hurt if the tax goes into effect. Older
Americans' retiree insurance plans typically have higher
premiums. If not repealed, employers may reduce the benefits
provided to their retirees who are younger than 65 and
eliminate supplemental coverage altogether for Medicare
eligible retirees age 65 and over. In addition, the tax
disproportionately hurts women, low- to middle-class
individuals and families, people with disabilities, workers
with high-risk occupations, and those with chronic medical
conditions.
Many workers are already experiencing the effects of the
tax. Some employers are reducing health coverage for their
employees to avoid the tax. Others are increasing premiums
and deductibles to shift costs to workers. The Middle Class
Health Benefits Tax Repeal Act will eliminate this looming
danger facing millions of American workers.
I urge you to vote in favor of H.R. 748 to protect quality
health coverage for older Americans and millions of workers
and their families. The importance of this vote cannot be
overstated.
Sincerely,
Richard J. Fiesta,
Executive Director.
____
Alliance to Fight the 40,
July 15, 2019.
Hon. Mitch McConnell,
Majority Leader, U.S. Senate,
Washington, DC.
Hon. Nancy Pelosi,
Speaker, House of Representatives,
Washington, DC.
Hon. Charles Schumer,
Minority Leader, U.S. Senate,
Washington, DC.
Hon. Kevin McCarthy,
Minority Leader, House of Representatives,
Washington, DC.
Dear Leader McConnell, Minority Leader Schumer, Speaker
Pelosi, and Minority Leader McCarthy: We are writing on
behalf of the 181 million Americans who receive health care
coverage through an employer. This coverage is threatened by
the looming 40% tax on employer-provided coverage. We applaud
the House for the bipartisan support and for bringing H.R.
748, a bill that fully repeals the ``Cadillac Tax,'' to the
floor for a vote this week. We urge the Senate to approve
quickly, and send this bill to the president before the end
of the year.
The tax is having a real impact, today, on the lives and
pocketbooks of American workers. A poll conducted July 12,
2019, found that 86% of voters oppose taxing employer-
provided health insurance.
The ``Cadillac Tax'' increases the health care cost burden
for working Americans, threatens patient access to care, and
targets vulnerable populations such as the families and sick
individuals most needing care. A significant majority of
voters--across party lines--oppose this tax because it
increases out-of-pocket costs for older, sicker and
underserved communities. Taxing workers trying to manage
chronic conditions fails to address our most urgent health
care challenges.
At 40%, the tax is twice the top corporate rate and will
have significant consequences. Waiting to address the tax
forces employers to adjust benefits now in anticipation of
the tax. Several studies have shown that the ``Cadillac Tax''
would have a direct and negative impact on the continued
affordability of employer-provided health insurance because
employers will be compelled to reduce benefits and increase
deductibles and other out-of-pocket costs to avoid the tax.
We need to protect the millions of American families with
employer-provided health care coverage from further benefit
losses and cost hikes. A healthy workforce drives a healthy
economy, but the so-called ``Cadillac Tax'' will drive
America's health care--and workforce--in the wrong direction.
There is strong support for repealing the 40% tax from both
sides of the aisle and both
[[Page H5968]]
sides of the Capitol--and all across the country. Currently,
there are more than 360 cosponsors in the House and 42
cosponsors in the Senate who support legislation to repeal
the tax. In addition, 665 organizations including,
businesses, nonprofits, cities, chambers of commerce,
insurers, brokers, unions, and patient advocacy groups
recently signed a letter supporting full repeal of the
``Cadillac Tax.''
We urge you to keep health care affordable for working
families by including full repeal of the ``Cadillac Tax'' in
any package under consideration before the end of this year.
Thank you for your consideration of this request.
Alliance to Fight the 40.
____
College and University Professional Association for Human Resources,
Knoxville, TN, July 17, 2019.
Hon. Mitch McConnell,
Majority Leader, U.S. Senate,
Washington, DC.
Hon. Charles Schumer,
Minority Leader, U.S. Senate,
Washington, DC.
Hon. Nancy Pelosi,
Speaker, House of Representatives,
Washington, DC.
Hon. Kevin McCarthy,
Minority Leader, House of Representatives,
Washington, DC.
Dear Leader McConnell, Minority Leader Schumer, Speaker
Pelosi, and Minority Leader McCarthy: On behalf of the
College and University Professional Association for Human
Resources (CUPA-HR), I write in support of H.R. 748, a bill
that fully repeals the ``Cadillac Tax,'' and urge members of
the House to vote ``YES'' when the bill comes to the floor
for a vote this week. I also urge the Senate to approve this
bill quickly and send the bill to the President's desk before
the end of the year.
CUPA-HR serves as the voice of human resources (HR) in
higher education, representing more than 31,000 human
resources professionals and other higher education leaders at
over 2,000 colleges and universities across the country. Its
membership includes 93 percent of all U.S. doctoral
institutions, 79 percent of all master's institutions, 58
percent of all bachelor's institutions and over 500 two-year
and specialized institutions. Higher education employs over
3.9 million workers nationwide, with colleges and
universities in all 50 states.
CUPA-HR members collectively provide comprehensive health
benefits to millions of employees, retirees, students and
their families. As such, CUPA-HR supports and encourages
employer efforts to provide benefits that enhance employees'
health and wellness--including efforts to keep healthcare
affordable.
For these reasons we urge the full House to vote ``yes'' on
this legislation. Please do not hesitate to reach out to me
to discuss this issue further.
Sincerely,
Joshua A. Ulman,
Chief Government Relations Officer, College and University
Professional Association for Human Resources.
____
SHRM,
Alexandria, VA, July 15, 2019.
Speaker Nancy Pelosi,
House of Representatives.
Leader Kevin McCarthy,
House of Representatives.
Leader Charles Schumer,
U.S. Senate.
Leader Mitch McConnell,
U.S. Senate.
Dear Speaker Pelosi, Leader McCarthy, Leader Schumer, and
Leader McConnell, For over seventy years the Society for
Human Resource Management (SHRM) has represented the
interests of our nation's Human Resources (HR) professionals.
Today, with more than 300,000 members who impact the lives of
115 million employees each day we use our voice to elevate
issues squarely at the intersection of work, workers and the
workplace. Workplace healthcare is one of those issues.
SHRM believes public policy must strengthen the employer-
based health care system, which provides coverage to more
than 181 million Americans. As the bedrock of the U.S. health
care system, employer-sponsored plans are the largest
providers of health insurance (66 percent of the workforce)
to individuals in the United States. Therefore, I write to
share SHRM's strong support of H.R. 748 and S. 684, the
Middle Class Health Benefits Tax Repeal Act.
Although not effective until 2022, employers are already
restructuring their health care benefit offerings to avoid
the tax. According to a new analysis by the Kaiser Family
Foundation, the anticipated tax would affect one in five
(21%) employers offering health benefits when it takes effect
in 2022 unless employers change their health plans.
As 2022 approaches, more employers will have to closely
scrutinize their health benefit offerings and make the
necessary changes to avoid the tax, which may include
reducing benefits and/or altering wellness and chronic care
prevention programs. While the excise tax is only intended to
target high-value plans, modest plans will also be impacted,
meaning millions of Americans and their families could face
higher copays and deductibles, causing some to decline
employer-provided health care.
The Cadillac Tax must be dealt with well in advance of its
proposed implementation date, otherwise employees could see
further changes in their benefit options. For these reasons,
I urge you to support H.R. 748 when it is considered on the
House floor this week and encourage swift action in the
Senate.
Sincerely,
Johnny C. Taylor, Jr., SHRM-SCP,
President & CEO.
____
Partnership for
Employer-Sponsored Coverage,
July 15, 2019.
Hon. Nancy Pelosi,
Speaker, House of Representatives,
Washington, DC.
Hon. Kevin McCarthy,
Minority Leader, House of Representatives,
Washington, DC.
Dear Speaker Pelosi and Leader McCarthy: As members of the
Partnership for Employer-Sponsored Coverage, we write with
our strong support for passage of the Middle Class Health
Benefits Tax Repeal Act (H.R. 748), to repeal the 40 percent
excise tax on employer-sponsored health coverage and employee
benefits under the Affordable Care Act (ACA). This important
reform effort impacts the over 181 million Americans covered
through employment-based benefits plans.
The Partnership for Employer-Sponsored Coverage is
committed to ensuring that employer-sponsored coverage is
strengthened and remains a viable, affordable option for
decades to come. Employer-sponsored coverage has been the
backbone of our nation's health system for nearly eight
decades. Employers have a vested interest in health care
quality, value, and system viability.
The 40 percent excise tax, also known as the Cadillac tax,
would force employers to cut or limit employee benefits. The
tax is a blunt instrument that proponents envision will
address the demand side of rising health costs. While dubbed
the Cadillac tax because the provision was targeting ``high
cost'' employer-sponsored health coverage, it would impact
the vast majority of employee benefits plans.
While we appreciate prior delays of this tax, uncertainty
remains in the employer health market as the U.S. Treasury
Department begins to develop proposed rules for
implementation. Employers make plan decisions well in advance
of a coverage year beginning and looming proposed rules have
a direct impact on plan decisions that are being made now for
the 'next several coverage years.
Full repeal of the Cadillac tax is extremely timely. H.R.
748 will bring certainty to millions insured under an
employer plan.
Sincerely,
American Hotel & Lodging Association.
American Rental Association.
American Staffing Association.
Associated General Contractors of America.
Auto Care Association.
The Council of Insurance Agents & Brokers.
Food Marketing Institute.
HR Policy Association.
International Franchise Association.
National Association of Health Underwriters.
National Association of Wholesaler-Distributors.
National Restaurant Association.
National Retail Federation.
Retail Industry Leaders Association.
Society for Human Resource Management.
Ms. DelBENE. Madam Speaker, I yield 1\1/2\ minutes to the gentleman
from Pennsylvania (Mr. Brendan F. Boyle).
Mr. BRENDAN F. BOYLE of Pennsylvania. Madam Speaker, I thank my
friend from Washington State for yielding.
More than anything, today is about fairness for America's workers. I
come to this issue with the experience of remembering on several
occasions when I was growing up, my parents, who were both hardworking
members of organized labor, going through a contract negotiation and
wondering, if they were going to go out on strike, what was going to
happen.
On more than one occasion, it would end like this. They would say:
Well, I think we got a fair deal. We are forgoing a pay increase, but
thank God we are able to save our healthcare and our benefits.
Time and time again, thousands--indeed, millions--of American workers
made that decision that they would forgo pay raises, forgo pay
increases, so they could save their healthcare. So then, decades later,
to face a 40 percent tax on that healthcare just is not right and not
fair to America's workers.
So I am proud to stand here today with my fellow Pennsylvanian on the
other side of the aisle, with colleagues
[[Page H5969]]
of mine on both sides of the aisle, in order to repeal this Cadillac
tax which never should have been passed in the first place.
Madam Speaker, I will enter into the Record a number of letters from
organizations all supporting this piece of legislation to repeal the
Cadillac tax.
NRF,
July 16, 2019.
Hon. Nancy Pelosi,
Speaker, House of Representatives,
Washington, DC.
Hon. Kevin McCarthy,
Minority Leader, House of Representatives,
Washington, DC.
Dear Speaker Pelosi and Minority Leader McCarthy: I write
to share the strong support of the National Retail Federation
(NRF) for H.R. 748, the Middle Class Health Benefits Tax
Repeal Act of 2019. Please note that NRF may consider votes
on the strongly bipartisan H.R. 748 and related procedural
motions as Opportunity Index Votes for our annual voting
scorecard.
The National Retail Federation, the world's largest retail
trade association, passionately advocates for the people,
brands, policies and ideas that help retail thrive. From its
headquarters in Washington, D.C., NRF empowers the industry
that powers the economy. Retail is the nation's largest
private-sector employer, contributing $2.6 trillion to annual
GDP and supporting one in four U.S. jobs--42 million working
Americans. For over a century, NRF has been a voice for every
retailer and every retail job, educating, inspiring and
communicating the powerful impact retail has on local
communities and global economies.
H.R. 748, introduced by Representatives Joe Courtney (D-CT)
and Mike Kelly (R-PA), will repeal the Affordable Care Act's
40% excise tax on the excess value of employer-sponsored
health plans. Though portrayed as being targeted at rich
``gold-plated'' benefit plans, the ``Cadillac Tax'' is
projected to hit much more mainstream plans covering low- and
middle-class families in the coming years because of how it
is indexed.
This legislation helps protect health insurance coverage
enjoyed by 181 million Americans. According to 2018 mid-term
election polling, 81 percent of voters oppose taxing
employer-provided health coverage.
NRF appreciates Congress' past two successful efforts to
delay the ``Cadillac Tax.'' We urge its full repeal, however,
because this tax forces the reduction of benefits well in
advance of its effective date. Employers generally craft
benefit plans two or more years in advance of the actual plan
year. Benefits are being reduced now (increasing employee
cost-sharing) to avoid the unfair tax on ``excess'' benefits.
We strongly urge your support for H.R. 748, bipartisan
legislation to repeal the ``Cadillac Tax.''
Sincerely,
David French,
Senior Vice President, Government Relations.
____
NECA,
House of Representatives,
Washington, DC.
Dear Representative: On behalf of the National Electrical
Contractors Association (NECA), I am writing in strong
support of H.R. 748--Middle Class Health Benefits Tax Repeal
Act of 2019, introduced by Rep. Joe Courtney (D-CT) and Rep.
Mike Kelly (R-PA)
This critically needed legislation seeks to repeal the
``Cadillac tax,'' which if implemented would levy a 40
percent tax on ``high-end'' employer-sponsored health
insurance plans with benefits valued at $10,200 per year per
individual or $27,500 per family. This tax ignores
significant demographic and geographic factors and applies to
benefits that help keep employees healthy, such as health
savings accounts. Most importantly, it penalizes employers,
including NECA contractors, for providing their employees
with quality health coverage.
NECA contractors work to provide quality, affordable health
coverage through self-insured, employer-sponsored group plans
to well over 500,000 employees across our nation. Employer-
sponsored health insurance provides affordable quality
coverage in the best interest of American businesses and
their workers. Although the tax does not go into effect until
2022, employers are already being compelled to reduce
benefits or implement increased cost-sharing to avoid being
on a trajectory to trigger the tax thresholds. If Congress
does not act now, the tax will hurt millions of Americans
with employer-sponsored health care.
Thank you for your consideration of these views. As the
nationally recognized voice of the $171 billion electrical
construction industry, NECA, and our 118 local chapters
nationwide urge you to vote yes on H.R 748. Please note that
we will include this vote in our NECA Legislative Report Card
for the 116th Congress.
Thank you for your consideration of our views.
Sincerely,
Marco A. Giamberardino, MPA,
Vice President, Government
and Public Affairs.
____
National Association of
Health Underwriters,
Washington, DC, July 15, 2019.
Hon. Nancy Pelosi,
Speaker, House of Representatives,
Washington, DC.
Hon. Kevin McCarthy,
Minority Leader, House of Representatives,
Washington, DC.
Dear Speaker Pelosi and Leader McCarthy: The National
Association of Health Underwriters (NAHU) endorses the
passage of H.R. 748, a repeal of the 40% excise tax on
certain employer-sponsored health insurance plans, known as
the ``Cadillac Tax.'' NAHU represents 100,000 licensed agents
and brokers who are engaged in the sale and service of health
insurance and other ancillary products. NAHU members serve
employers and consumers around the country. Our members work
to help millions of employers of all sizes finance,
administer and utilize their group health benefit plans on a
daily basis, and they know firsthand how the 40% excise tax
on health benefits will hurt middle-class consumers.
H.R. 748 has received bipartisan support with 361 co-
sponsors with a majority of each party caucus supporting
repeal of the Cadillac Tax. The Cadillac Tax, set to go into
effect in 2022, will impose a 40% excise tax on health plans
that exceed certain cost thresholds beginning in 2022.
Specifically, the law calls for a 40% excise tax on the
amount of the aggregate monthly premium of each primary
insured individual that exceeds the year's applicable dollar
limit, which will be adjusted annually to the Consumer Price
Index plus one percent. The current threshold for when the
tax applies is set to $11,100 for individual coverage and
$29,750 for ``other than self-only'' coverage. Because of the
wide-ranging benefits that can be counted towards the tax,
including HSAs, HRAs, FSAs and other cost-containment
measures, many employers will find their plans exceeding
these thresholds when the tax takes effect. While designed as
a disincentive for employers offering the most benefit-rich
plans, in reality the tax will impact a majority of plans,
including those that aren't benefit-rich and were not the
intended targets of this provision.
All employers could be subjected to this tax, with various
factors determining the likelihood of a plan's costs
exceeding the threshold. These include family size, state
benefit mandates, high-cost geography, age, health status,
the size of the employer and other factors. In addition to
paying the tax, employers will be forced to handle onerous
compliance requirements on a monthly basis to record and pay
the tax to insurers. In turn, insurers will be required to
treat the tax as revenue and will be taxed on that amount,
which will increase the size of the tax for everyone.
Individuals and families who are already struggling to afford
existing plan premiums and higher deductibles will also be
hit by the tax, further increasing their costs.
We appreciate your consideration on this issue that is
important for businesses and their employees so that all
families can afford quality healthcare. We look forward to
working with you and your colleagues in enacting this
bipartisan legislation this year.
Best regards,
Janet Trautwein,
Executive Vice President and CEO.
____
National Association of
Manufacturers,
July 16, 2019.
House of Representatives,
Washington, DC.
Dear Representative: On behalf of the National Association
of Manufacturers (NAM), the largest manufacturing association
in the United States representing 14,000 manufacturers in
every industrial sector and in all 50 states, I am writing to
urge you to support the Middle Class Health Benefits Tax
Repeal Act of 2019 (H.R. 748) introduced by Representatives
Joe Courtney (D-CT) and Mike Kelly (R-PA).
Manufacturers consistently rank the rising cost of health
care as a primary business challenge in the NAM's Quarterly
Outlook Survey. Despite the challenge, approximately 98
percent of NAM members continue to provide health insurance
to employees. The manufacturing industry is committed to
providing quality health benefits to employees to maintain a
healthy workforce, attract and retain talent and because it
is the right thing to do. Many are leading new health benefit
initiatives to provide quality care that reduces growing
health benefits costs. Additionally, manufacturers oppose
applying heavy federal tax burdens on employers' and workers'
health bills.
H.R. 748 would permanently repeal the 40 percent tax-hike
on ``high-cost'' health benefits, commonly referred to as the
Cadillac Tax. While this tax was initially intended to impact
high-cost employer-sponsored health care plans, it is
expected to burden a broad crosssection of small and large
employers across the country and to discourage employer
innovations that are improving benefits for manufacturing
workers. Manufacturers have been forced to begin plan
preparations even though the tax is scheduled to go into
effect in 2022. Fully repealing the Cadillac tax, health
insurance tax and medical device tax remain top health care
priorities for manufacturers.
The NAM urges strong support for H.R. 748 and appreciates
ongoing efforts to eliminate the looming threat of health
care taxes on manufacturers. Thank you for your
consideration.
Sincerely,
Robyn M. Boerstling,
[[Page H5970]]
Vice President, Infrastructure, Innovation and Human
Resources Policy.
____
National Taxpayers Union
50th Anniversary, July 16, 2019
NTU urges all Representatives to vote ``YES'' on H.R. 748,
the Middle Class Health Benefits Tax Repeal Act of 2019. This
legislation would permanently repeal the flawed ``Cadillac
tax'' scheduled to go into effect in 2022, which could impact
up to one in five employers immediately. Congress should also
work to permanently repeal the medical device tax and the
Health Insurance Tax (HIT), both of which are scheduled to go
into effect in 2020.
NTU has noted before that the Affordable Care Act's excise
tax on high-cost employer-sponsored insurance (ESI),
popularly known as the ``Cadillac tax,'' is a poor solution
to a real policy dilemma--addressing the employer-sponsored
health insurance tax exclusion that has distorted markets.
Even though the intent of the tax was to reduce health care
costs and boost the economy, the Joint Committee on Taxation
(JCT) and the Congressional Budget Office (CBO) have
estimated that the Cadillac tax will depress wages.
The Cadillac tax would also have a far-reaching impact on
ESI plans. The Kaiser Family Foundation (KFF) recently
reported that the Cadillac tax could impact more than one in
five employers (21 percent) in 2022, when the tax is
scheduled to go into effect. Since the cost of ESI plans is
expected to rise faster than inflation, a growing proportion
of plans will likely become subject to the tax over time.
KFF-estimates that nearly two in five ESI plans (37 percent)
will be subject to the tax by 2030.
When it comes to taxes imposed by the Affordable Care Act,
though, Congress should not stop with Cadillac tax repeal.
Both the medical device tax and the Health Insurance Tax
(HIT) have been suspended by Congress, but are scheduled to
resume in 2020. The costs of these taxes will ultimately be
borne by consumers, in the form of higher health spending and
higher premiums. Additionally, Congress should examine the
tax treatment of health care in a holistic fashion and work
toward a minimally distortionary environment that empowers
consumers to make decisions about their own health care
needs.
NTU strongly urges Representatives to support H.R. 748, and
additionally to permanently repeal both the medical device
tax and HIT.
Roll call votes on H.R. 748 will be included in our annual
Rating of Congress and a ``YES'' vote will be considered the
pro-taxpayer position.
Ms. DelBENE. Madam Speaker, I yield 1\1/2\ minutes to the gentleman
from Nevada (Mr. Horsford).
Mr. HORSFORD. Madam Speaker, thank you to my colleague from
Washington for managing this important bill.
I rise today to speak in support of the Middle Class Health Benefits
Tax Repeal Act. We cannot afford to let this 40 percent excise tax on
employer-sponsored health plans to take effect. This tax would increase
costs for America's working and middle-class families.
For many working families, necessary medical treatment remains
tragically unaffordable due to exorbitant out-of-pocket costs and
deductibles. If this so-called Cadillac tax isn't repealed, this crisis
of affordability for medical care will only worsen.
To avoid the excise tax, employers will, in all likelihood, reduce
the value of their plans and reduce benefits and even increase their
workers' share of the cost. This would result in increases in out-of-
pocket costs for more than 180 million workers, including 1.3 million
people in my home State of Nevada, and it would decrease access to
quality insurance plans across the country.
This vote helps labor throughout the country, including the Culinary
Workers Union in my home State. Members' benefits, wages, and overall
compensation allow them to stay afloat financially, and to quote the
international union president for UNITE HERE, D. Taylor: ``They drive
used cars, not Cadillacs, and their healthcare does not include spa
treatments.''
At a time when this is the reality for our constituents, Congress
should make sure that employers doing the right thing and providing
high-value health insurance to their employees are supported.
The SPEAKER pro tempore. The time of the gentleman has expired.
Ms. DelBENE. Madam Speaker, I yield an additional 30 seconds to the
gentleman from Nevada.
Mr. HORSFORD. Madam Speaker, Congress should make sure that employers
doing the right thing and providing high-value health insurance to
their employees are supported, not penalized with an egregious tax.
Madam Speaker, I include in the Record a letter from UNITE HERE and
several other national organizations.
UNITEHERE!,
Las Vegas, NV, July 15, 2019.
House of Representatives,
Washington, DC.
Dear Representative: On behalf of UNITE HERE and the
300,000 men and women and their families from the fastest
growing private sector labor union in America, I am asking
for your vote to approve H.R. 748, the ``Middle Class Health
Benefits Tax Repeal Act of 2019.''
It is time to finally put a marker down and bring real tax
relief to hard pressed working Americans, not just to health
insurance and medical device companies who have a legion of
lobbyists at their disposal. At a time when consumer anxiety
is high and where only one job should be enough to make a
living but isn't, the 181 million middle-class Americans who
receive their health benefits from a private employer need an
economic boost and some good news. I want to make the
position of our union and membership clear: We support tax
relief for middle-class Americans, starting with the repeal
of the 40% excise tax on employer-sponsored health insurance.
The so-called ``Cadillac Tax'' impacts far more health
plans than many members of Congress, including some
Democrats, who characterize these hard-earned health benefits
``overly generous.'' In fact, the 40% excise tax unfairly
taxes our own members who make--all in, salary and benefits--
under $50,000 a year. UNITE HERE members' benefits, wages,
and overall compensation allow them to stay afloat
financially. They drive used cars, not Cadillacs, and their
health care does not include spa treatments.
Delayed but not yet repealed, this tax has already
incentivized employers to dramatically reduce their health
benefits and overall compensation to avoid the tax
thresholds. As you should be aware, health care costs are
soaring. In fact, 73% of employers have changed, or plan to
change, their health insurance offerings to avoid the tax,
according to a recent survey by the International Foundation.
Many of our low-income members reject pay raises just to
maintain their health benefits.
Our union is already doing its part to keep health costs
down among our members. Ken Blair, President of UNITE HERE
Local 217 says: We're fighting hard to keep our costs down
inside our union by making sure our members stay healthy or
making sure they use the most cost effective way to keep our
insurance low. Now we're going to be taxed!
Our membership is majority minority, a majority of women,
and represent workers from over (111) countries. On behalf of
our members, I again urge you to vote for H.R. 748 and stand
up for millions of middle-class Americans who receive modest
health insurance coverage through their jobs.
D. Taylor,
International President,
UNITE HERE.
____
Service Employees
International Union,
Washington, DC, July 17, 2019.
Dear Representative: On behalf of the two million members
of the Service Employees International Union (SEIU), I urge
you to vote for H.R. 748, Middle Class Health Benefits Tax
Repeal Act, which will eliminate the 40 percent ``Cadillac''
tax on health benefits. Employers are using the tax as
justification to shift more costs to employees, raising costs
for workers and their families. Congress must take action to
ensure that everyone has access to affordable coverage
whether that coverage comes through an employer-sponsored
plan, private non-group coverage, or public programs.
Too many working families are struggling to afford high out
of pocket costs--including deductibles, co-insurance, and co-
payments required under their employer sponsored insurance
(ESI) plans. Unfortunately, the impending 40 percent health
benefits tax has exacerbated the trend of shifting health
costs to working people by creating new pressure for
employers to reduce the generosity of coverage in order to
avoid triggering the tax. Though some claim providing
consumers more ``skin in the game'' through increased cost-
sharing will encourage them to use care more efficiently and
reduce costs, research demonstrates that high cost-sharing
requirements prevent people from accessing even necessary
care, including care for chronic illnesses that could prevent
more expensive interventions in the future. For example, a
2019 survey of adults with employer health benefits conducted
by the Kaiser Family Foundation/LA Times found that half of
respondents said that they or someone in their family went
without or postponed needed care or medication as a result of
cost. Given the economic stress working people face, policies
should encourage high-value comprehensive coverage. The 40
percent health benefits tax acts to discourage it.
Furthermore, since their inception, unions have advocated
and bargained on behalf of their members for comprehensive
affordable healthcare. As a union, we value the robust health
insurance coverage we fought for at the bargaining table for
so many years, often at the expense of higher wages. Many of
our members live in geographic areas with higher living
expenses that include significant
[[Page H5971]]
health costs. The majority of our membership is comprised of
women; as they are likely to need health services that will
cost more than their younger male counterparts, their
coverage plans will be more expensive. We should not punish
workers who, through their union, are able to have a voice in
their pay and benefits and in fact should honor the choices
and decisions workers make through negotiations with their
employers.
For decades, SEIU members have fought for healthcare as a
basic human right, not a privilege. We believe that everyone
in America has a right to quality, affordable healthcare.
SEIU members support all legislation that improves and
strengthens our healthcare system--including expanding
coverage and lowering excessive out-of-pocket costs--that are
a huge financial burden on working American families today
and a major cause of economic stress. We view repeal of the
excise tax as a necessary improvement that is consistent with
our goal to support policies that make healthcare more
affordable. While some in the Administration and Congress
actively work to sabotage our healthcare system, whether
through regulation or legal attacks, it is heartening to see
that others are taking seriously their obligation to try and
improve America's healthcare seriously.
For all these reasons, we ask you to support the Middle
Class Health Benefits Tax Repeal Act (H.R. 74).
Sincerely,
Mary Kay Henry,
International President.
____
LiUNA!,
Washington, DC, July 15, 2019.
House of Representatives,
Washington, DC.
Dear Representative: On behalf of the 500,000 members of
the Laborers' International Union of North America (LIUNA), I
urge you to support and vote for H.R. 748, bipartisan
legislation to repeal the so-called Cadillac Tax provision of
the Affordable Care Act (ACA).
Since the ACA became law, this regressive tax has been a
looming dark cloud above every union member's health benefits
and the remaining 181 million Americans who rely on their
employer-sponsored insurance. For the half-million members of
LIUNA whose healthcare benefits are collectively bargained
for and essentially self-funded in order to provide good
healthcare for themselves and their families, this is
unacceptable and it needs to end now.
For nearly ten years, unions, businesses, patient
advocates, and consumer groups have supported repeal of the
Cadillac Tax, and, with over 350 cosponsors, we finally have
the opportunity to repeal it.
We urge you to support H.R. 748 and vote to end this unfair
tax on America's working class.
With kind regards, I am
Sincerely yours,
Terry O'Sullivan,
General President.
____
Air Line Pilots
Association International,
Washington, DC, July 16, 2019.
Dear Representative: On behalf of the 62,000 professional
pilots represented by the Air Line Pilots Association,
International (ALPA), I write in support of the bipartisan
Middle Class Health Benefits Tax Repeal Act of 2019 (H.R.
748). H.R. 748, introduced by Representative Joe Courtney (D-
CT), repeals the 40% excise tax on health care plans.
H.R. 748 currently has 361 bipartisan cosponsors, and polls
conducted in 2018 revealed that taxing employer provided
health care benefits is opposed by over 81% of Americans. The
excise tax on employer provided health care benefits is
predicated on the flawed economic assumption that the cost of
a health insurance plan is the main driver of health care
costs. Detailed analysis of our health insurance system has
demonstrated that the real drivers of health care costs are
location, occupation, gender and age.
Without a repeal, many employers are necessarily preparing
for the introduction of the excise tax by increasing copays,
deductibles and out of pocket maximums in their health care
plans. The excise tax will further erode the health care
protection provided by our plans and drive out of pocket
costs up for professional pilots and other workers.
When H.R. 748 comes up for a vote this week, I urge you to
support it. Thank you for your consideration.
Sincerely,
Capt. Joseph G. DePete,
President, Air Line Pilots Association Intl.
____
July 15, 2019.
Hon. Richard E. Neal,
House of Representatives,
Washington, DC.
Dear Congressman Neal: On behalf of our 3 million members
and the 50 million students they serve, we urge you to VOTE
YES on the Middle Class Health Benefits Tax Repeal Act (H.R.
748), which would eliminate the 40 percent excise tax on
``high cost'' employer-sponsored health plans scheduled to
take effect in 2022. Votes on this issue may be included in
NEA's Report Card for the 116th Congress.
Under the Affordable Care Act, ``high cost'' employer-
sponsored health benefits whose value exceeds specified
thresholds will be subject to a 40 percent excise tax
starting in 2022: $11,200 for single coverage and $30,150 for
family coverage, the Tax Policy Center projects. We support
repeal because:
The tax would take money out of the pockets of educators
who have accepted lower wages in return for decent health
care coverage--just when there's growing recognition among
lawmakers and the American people that educators deserve
better compensation. Moreover, educators would be among those
hit hardest by the tax as noted in an analysis published in
Health Affairs.
The tax applies equally to plans for lower- and higher-
income employees, as well as retirees, regardless of whether
they live in areas with unusually high health care costs.
The tax is far likelier to hit plans due to factors beyond
employees' control--their age, gender, and location--than
because of the benefits provided.
Initially, the Kaiser Family Foundation estimates, the tax
would affect 21 percent of employers who provide health
coverage--31 percent when workers' voluntary contributions to
Flexible Spending Accounts are taken into account as the law
requires.
Over time, more and more workers would be subject to the
tax since health care costs continue to rise at a faster rate
than inflation.
Educators are already struggling to make ends meet--they
cannot afford to pay even more for health care. Please VOTE
YES on the Middle Class Health Benefits Tax Repeal Act (H.R.
748).
Sincerely,
Marc Egan,
Director of Government Relations,
National Education Association.
____
United Steelworkers,
Pittsburgh, PA, July 16, 2019.
Re United Steelworkers support H.R. 748, the Middle Class
Health Benefits Repeal Act of 2019.
House of Representatives,
Washington, DC.
Dear Representative: On behalf of the 850,000 members of
the United Steelworkers (USW), I urge you to support the
Middle Class Health Benefits Repeal Act of 2019 (H.R. 748).
With more than half of Americans covered under employer-
sponsored healthcare, the so-called ``Cadillac Tax'' could
affect the healthcare costs of more than 181 million
Americans across the country. By allowing this excise tax to
go into effect, hardworking middle-class families with
employer-sponsored healthcare plans could face reduced
benefits and increased out-of-pocket costs as employers push
to restructure and renegotiate workers' hard-earned
healthcare benefits.
The bipartisan Middle Class Health Benefits Repeal Act of
2019 (H.R. 748) would repeal the 40 percent excise tax on the
value of employer-sponsored health plans, ensuring that
workers and their families retain access to the care they
need. Although the tax has been delayed multiple times since
its inception, its looming nature impacts the bargaining of
multi-year contracts between USW members and employers. The
USW is currently negotiating contracts including healthcare
plans that will be subject to the tax without congressional
action, and workers are facing the potential costs at a time
when out-of-pocket healthcare expenses are already rising.
Despite hefty increases in premiums, deductibles and co-
pays, workers are not experiencing equivalent increases in
their wages. According to the Kaiser Family Foundation's 2018
Employer Health Benefits Survey, workers' healthcare costs
are increasing faster than both inflation and wages. Since
2008, deductibles on workers' plans have increased 212
percent and family premiums have risen 55 percent. Further
taxing workers' healthcare benefits will only add to the
burden of these increased healthcare costs, not reduce them.
It is time for Congress to permanently repeal the misguided
excise tax on employer-sponsored health plans. The USW urges
you to support the Middle Class Health Benefits Repeals Act
of 2019 (H.R. 748) and pass this important legislation.
Sincerely,
Thomas M. Conway,
International President.
Mr. HORSFORD. Madam Speaker, I urge all of my colleagues today to
stand with America's working men and women and support the Middle Class
Health Benefits Tax Repeal Act and vote in favor of abolishing this
tax.
Ms. DelBENE. Madam Speaker, I yield 1 minute to the gentleman from
Ohio (Mr. Ryan).
Mr. RYAN. Madam Speaker, I want to thank the gentlewoman for
yielding.
Madam Speaker, it is always a pleasure to be able to come to this
floor and join in agreement with the gentleman from Pennsylvania. It
does not happen very often, but I am glad we can be here.
This is about the working class. I represent a district in northeast
Ohio that has high union membership. As the gentleman from Pennsylvania
stated a few minutes ago, there are a lot of
[[Page H5972]]
contract negotiations. They are always happening. And more often than
not, over the last 20 or 30 years, the men and women of labor have been
forced to negotiate contracts where they didn't get an increase, maybe
a 1 percent, 1\1/2\ percent increase, but they were always able to
sustain their healthcare. So this is a very important piece of
legislation, one I know we have been working on.
I want to thank the gentlewoman from Washington State. I want to
thank Chairman Neal from the Ways and Means Committee. This has been a
long time coming. I hope we can fix this, and I hope it is the first
step to us building out a better healthcare system that is more
affordable, more accessible, more innovative, and more focused on
prevention as we move down road in the next several months.
Mr. KELLY of Pennsylvania. Madam Speaker, I yield myself the balance
of my time.
I want to thank my colleagues on the other side.
There is an old saying in life that sometimes you get a second chance
to do the right thing. Eight years ago when the Affordable Care Act was
passed, I am sure it was an oversight or an undersight or just not
actually understanding what was taking place that day, my colleagues on
the other side at that point were looking to pass the Affordable Care
Act, and one of the victims in that was employer-sponsored insurance.
We referred to it today as the ``Cadillac tax,'' and I am glad we
used that term, quite frankly. I told you earlier I am a Cadillac
dealer, so I am really happy to hear it. Any time anybody thinks
something is outstanding, they call it a Cadillac.
But what we are going to do today has nothing to do with fancy cars.
It has nothing to do with extravagant health plans, but it does have
everything to do with punishing hardworking Americans and their
families. What we are doing today is a crucial step toward protecting
employer-sponsored health insurance for all Americans.
Again, as I said earlier, we are doing the right things for the right
reasons for the right people, not just Republicans, not just Democrats,
but every single American out there who gets his or her health
insurance through their employer.
It is a remarkable thing to see happen here on the people's floor,
the people's House, where we come together and agree that we can fix a
wrong, we can right a wrong, we can make things right that we maybe had
a different look at 8 years ago but we decided today that it just
really makes sense to do that.
I want to give a special thank-you, though, to my good friends Tom
Reed and Josh Gottheimer for forming the Problem Solvers Caucus. In the
rules package this year, they were able to bring up a rule that says if
you get 290 sponsors or cosponsors on a piece of legislation, that
needs to come forward.
Joe Courtney has worked on this for many years, and we have already
talked about the number of people who were already on board and ready
to see this come forward, but it just couldn't get through the
procedures to get to the floor. And I think when I go back home, people
would say to me, if you have so many people that agree on the same
thing and are doing the right thing for the right reasons, why can't
you get it done? And then you have to say: Well, you know what? Not
only do you not understand it, I don't either.
{time} 1700
If we are acting in the best interests of the people we represent,
then we should be able to do these things. So sometimes you take a look
at what is holding you back from doing the right thing and you say
there is something in the rules that needs to change, and that has
taken place today.
But the really great part of it is--the really great part, is that
Republicans and Democrats are coming together in the peoples' House and
doing the right thing, ensuring, at least from our part of the
Congress, that we can repeal this onerous tax on hardworking Americans.
So I am so glad to be here today and I am so thankful. Working with
Joe Courtney has been absolutely marvelous. The gentleman has really
had staying power. He has never given up on this. He has stayed on it
and stayed on it and stayed on it. There is an old saying: Play through
the whistle.
I have got to tell you, Madam Speaker, in this case, Joe Courtney
played through the echo of the whistle. He never gave up.
So to be here with my colleagues today and coming to a conclusion
that this is the right thing for us to do is really good.
Madam Speaker, I want to thank my friends that came here and spoke
today on behalf of our side of the aisle for supporting this.
We have had an opportunity this afternoon to do something, to do
something not for ourselves, but for the people who sent us here to
represent them.
Madam Speaker, having said that, I would urge all of my colleagues to
vote in support of this piece of legislation and pass it and send it on
to the Senate, where we would hope they would understand that at this
end of the Capitol, there is overwhelming support for hardworking
Americans and their healthcare.
Madam Speaker, I yield back the balance of my time.
Ms. DelBENE. Madam Speaker, I strongly support H.R. 748, the Middle
Class Health Benefits Tax Repeal Act of 2019.
This legislation has been a bipartisan goal since I came to Congress
in 2012, the permanent repeal of the Cadillac tax. The original design
of the Cadillac tax was meant to be a narrowly targeted tax on the most
extravagant plans.
Instead, the tax will hit working families for a variety of factors
far beyond their control. That includes age, geography, and occupation.
A recent analysis from the Kaiser Family Foundation found that the
Cadillac tax will impact over 20 percent of employers when the tax goes
into effect in 2022. When flexible spending account contributions are
included, that number jumps to over 30 percent and would affect just
under half of all workers by 2030.
While the intended goal of the Cadillac tax was to put downward
pressure on plan costs, the mechanics of the tax will simply put more
costs onto working families in the form of higher deductibles and
greater cost-sharing so employers can avoid the tax.
Madam Speaker, I remind my colleagues that healthcare costs are a top
concern of the American people, and today we can take a meaningful step
to address that concern.
Madam Speaker, I urge all Members to vote ``yes'' on this
legislation, and I yield back the balance of my time.
Mr. LYNCH. Madam Speaker, I rise in strong support of H.R. 748, the
Middle-Class Health Benefits Tax Repeal Act. This important, bi-
partisan legislation will finally repeal, once and for all, the excise
tax on employer and labor union sponsored health plans, also known as
the ``Cadillac Plan Tax.'' This fix is long overdue.
This egregious tax, if allowed to take effect, would have hit the
health insurance that 181 million working Americans and many union
members and their families rely on. It would have likely resulted in
increased costs, and ultimately lesser access to health care, thereby
defeating the purpose for passing the A.C.A. in the first place.
This was one of the reasons why I voted against the final compromise
version of the A.C.A. in 2010: because while the Cadillac Tax was not
in the House-passed bill, the Senate added it into the legislation that
came back to the House. I believed then, and still do now, that
imposing a 40 percent tax on health insurance for union workers would
hurt hard-working American families--the very people who sent us here
to make their lives better.
Madam Speaker, before coming to Congress and before becoming a labor
rights lawyer, I was an ironworker for 18 years. I worked side-by-side
with men and women in the building trades who wanted nothing more than
to work hard and be able to take care of their families. When I was
President of my local union, I was acutely aware of the importance of
the benefits, such as health care, that we would negotiate on behalf of
our members. It is important to remember that generations of union
workers have stood on the picket line or taken less pay in their
paycheck in order to get better health care coverage. The Cadillac Tax
included in the A.C.A. actually sought to punish those workers for
standing up for their families. Imposing this tax would have broken the
good-faith promises made to these hard-working Americans.
I am not alone in recognizing the serious harms of the proposed
excise tax, because
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members of Congress from both sides of the aisle came together to delay
this tax again and again, moving its effective date from 2018 to 2022.
In addition, today's legislation, H.R. 748, has an astounding 369
cosponsors. I think that must be some kind of record. That kind of
bipartisanship has sadly become rarer these days, but this level of
agreement only goes to show that passing this bill is the right thing
to do.
Madam Speaker, this fix for the A.C.A. has been long-needed and I am
pleased that we are finally taking this important step to protecting
health care for hundreds of thousands of hard working, middle-class
Americans. I urge my colleagues to support this common-sense bill.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Massachusetts (Mr. Neal) that the House suspend the
rules and pass the bill, H.R. 748, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. KELLY of Pennsylvania. Madam Speaker, on that I demand the yeas
and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
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