Groups call on Congress to reject proposals to tax employer-provided health coverage

A group called Protecting Americans’ Coverage Together (PACT) is among a group of 70 organizations urging Congress to reject proposals to tax employer-provided coverage.

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PACT is a coalition that includes the U.S Chamber of Commerce, Business Roundtable, Vermeer Corp., the National Association of Manufacturers, and the Council for Affordable Health Coverage.

In a letter to Congressional leaders, PACT and the other organizations highlighted the widespread support for maintaining employer-provided coverage and the benefits in keeping the system tax-free.

“We are deeply concerned about proposals that will jeopardize the affordability and accessibility of health coverage. In addition to broad societal benefits and underpinning the stability of our health care system, the current tax-favored treatment of employer-provided health coverage delivers critical value and investment return for employers, workers and their families, and the federal government itself,” the letter stated.

PACT cited the value that workers place on their workplace health benefits, as well as the value employers place in providing this benefit.

“Ensuring the stability and tax-free status of employer-sponsored coverage is vital to the health, prosperity, engagement, and satisfaction of tens of millions of Americans. Polling shows that 96 percent of employees view their employer-provided health insurance as important to them. Overall, employees are satisfied with the coverage they receive from their employers. Crucially, this coverage has never been recognized as income to the worker and would result in increased taxes on millions of Americans,” they wrote.

It said health plans play a pivotal role in attracting and retaining talent. Also, employers recognize the value of employee health on the health of their business.

“Congress should ensure health care policies that prioritize maintaining and strengthening the integrity of the employer-sponsored system and enhancing its effectiveness. Congress should promote innovative solutions that lower costs and improve access to quality care. Congress should empower employers to continue providing vital health benefits to their employees. Accordingly, we urge you to consider the far-reaching implications of, and reject, any legislation that raises taxes on employer-provided health care coverage,” they concluded.