Introduced by NH-01 Congressman Frank Guinta, H.R. 879, the “Ax the Tax on Middle Class Americans’ Health Plans Act,” is dedicated to repealing the excessive taxes on premium health care plans. These taxes, otherwise known as the “Cadillac tax,” are slated to go into effect in 2018 as a part of ObamaCare and would impose a 40% excise tax on employee-sponsored health coverage that exceeds a certain amount. AMAC has expressed its strong support for this bill, as it would subject individual retirees whose health benefits exceed $11,850 and retiree’s families who exceed $30,950 to this additional tax. Intended to reduce the cost of health care by discouraging high-priced health plans, AMAC anticipates that middle class Americans will be hurt through a reduction in benefits from employers or the elimination in high cost plans altogether. This burden put upon employees restricts their access to quality health care at an affordable rate.
The Honorable Frank Guinta
1st District, New Hampshire
326 Cannon House Office Building
Washington, DC 20515
Dear Representative Guinta,
On behalf of the 1.2 million members of AMAC, the Association of Mature American Citizens, I am writing to offer our strong support for H.R. 879, the “Ax the Tax on Middle Class Americans’ Health Plans Act.” This important piece of legislation aims to protect Americans and their pocketbooks by repealing an excessive tax on premium health care plans.
The “Cadillac tax” is a 40 percent excise tax on employee-sponsored health coverage above a certain threshold. Health benefits exceeding $10,200 a year in value for individuals or $27,500 for families will be defined as “Cadillac plans” and are subject to the tax. For retirees, the thresholds are $11,850 and $30,950 respectively. The Cadillac tax is set to go into effect in 2018 as part of the “Patient Protection and Affordable Care Act,” known more commonly as “ObamaCare,” and stands to negatively impact over 145 million people covered by employer-sponsored health care plans.
Although the tax is intended to reduce the cost of health care by discouraging high-priced health plans, AMAC believes this tax will ultimately hurt middle class Americans by reducing the benefits provided by their employers. According to a recent survey conducted by the National Business Group on Health, it is estimated that 42 percent of employers are increasing employee cost sharing, while 30 percent of employers are eliminating high cost plans altogether. This shift places a higher burden on consumers estimated at an average of $620 upon implementation.
AMAC is firmly committed to fighting this egregious ObamaCare tax and ensuring that middle class and mature Americans have access to quality health care at an affordable rate. The Cadillac tax not only places an unnecessary burden on employees across the country, but it unfairly punishes Americans for purchasing plans the government deems excessive. Thanks to your leadership on an issue important to all Americans – especially seniors – AMAC is proud to support H.R. 879, the “Ax the Tax on Middle Class Americans’ Health Plans Act.”
President and Founder of AMAC