Member Advocacy

SHRM Members Call to Action: Contact Your Representative to Repeal the ACA Excise Tax

May 22, 2015

As previously reported, starting in 2018, a provision of the Affordable Care Act (ACA) will impose an excise tax otherwise known as the “Cadillac Tax” on employers whose health care plans cost more than $10,200 a year for individuals and $27,500 a year for families. Under the ACA, those plans are set to be taxed at 40 percent of the cost above those limits. Data shows that many employers will likely be subject to the tax.

Two legislative proposals have been introduced in the U.S. House of Representatives to repeal the excise tax on high cost, employer-sponsored health coverage. Representative Joe Courtney (D-Conn.) introduced the “Middle Class Health Benefits Tax Repeal Act of 2015” (H.R. 2050) and Representative Frank Guinta (R-N.H.) introduced a similar proposal, the “Ax the Tax on Middle Class Americans' Health Plans Act” (H.R. 879).

SHRM is supportive of both legislative proposals and has sent letters to the sponsors of H.R.2050 and H.R.879. It is important that HR constituents reinforce this message on Capitol Hill. As a matter of fact, constituent communications are powerful decision influencers as lawmakers contemplate which legislative initiatives to support in Congress. That’s why we need your help to reach out to U.S. House of Representative members to raise awareness and encourage their co-sponsorship of H.R. 2050 and H.R.879. It is critical that lawmakers hear from HR professionals in their congressional districts about how the anticipated excise tax will negatively impact employers and employees alike.

To facilitate email communication with your U.S. House of Representative member, encouraging him/her to co-sponsor H.R.2050 and H.R.879, SHRM's government affairs team has prepared a template letter on the HR Policy Action Center. Through the HR Policy Action Center you can edit and personalize your message and send it directly to your Representative’s Washington, DC office. Your personal email will help your Representative understand how the anticipated excise tax will have an adverse effect and how employers are restructuring their health care offerings to employees to avoid the tax.

Click HERE to send your U.S. House of Representative a letter now to support repeal of the excise tax.


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