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Survey Results Reveal Public Opposition to 40 Percent Tax on Health Plans

Oct 21, 2015
A new public opinion survey reports that three-quarters of the public worries that the pending 40 percent tax on some employer-sponsored health benefits will hurt their access to health care services, a concern shared by America’s largest employers.
 
Business Roundtable, the U.S. Chamber of Commerce and National Association of Manufacturers announced the results of the Morning Consult survey today, briefing reporters on the impact of the 40 percent tax that the Affordable Care Act imposes on high-value health plans. 
 
The striking numbers: Three-quarters of all respondents nationwide are concerned about the 40 percent tax, and 58 percent nationwide say the tax should be delayed or repealed.
 
The CEOs of Business Roundtable lead companies that provide health benefits to more than 40 million Americans – employees and their dependents – and they anticipate a serious impact on those benefits if the tax goes into effect in 2018.
 
The tax is actually having an impact now, as Business Roundtable members are already designing their 2017 and 2018 benefits plans.
 
Addressing the rising costs of health care is one of the top priorities for America’s business leaders. The experience of our member companies shows that innovative wellness and prevention programs, including onsite clinics, improve health and reduce the long-term costs of chronic disease. 
 
Our members have also found that employees want better information on the cost and quality of providers. Information and tax-preferred health savings programs help employees and their families make good decisions about their own health care needs.
 
If the IRS determines that the 40 percent tax applies to wellness and prevention benefits and other innovative benefits, employers may not be able to offer the very benefits that are likely to improve health outcomes, encourage more appropriate utilization and reduce cost growth. 
 
The anxiety expressed by voters is reflected in the strong bipartisan support for repeal, including a majority of the House of Representatives. Opposition is bipartisan in the Senate, as well. (See, for example, Columbus Dispatch, Oct. 1, “Portman, Democrats agree on eliminating Obamacare ‘Cadillac tax’”)  Business Roundtable supports these efforts.
 

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