ALLIANCE TO FIGHT FOR HEALTH CARE
NEWS
A recent poll by the Winston Group on behalf of the Alliance to Fight for Health Care shows voters want to keep their employer-provided health care coverage tax-free.
By a 3 to 1 margin, voters oppose proposals to impose taxes on employer-provided health plans. Opposition was also bipartisan, with 61% of Republicans, 62% of Independents, and 52% of Democrats opposing the proposal.
“In recent months, we have heard again a call to eliminate or ‘cap’ the employee tax exclusion on health coverage, said James A. Klein, president of the American Benefits Council. “This isn’t just bad policy – the Winston Group poll shows that this would be a serious political liability.”
While voters are generally satisfied with their health insurance (79%), the poll also underscores deep concerns about health care costs. The economy/inflation is the top issue for 38% of voters, and they believe that over the next year, health care costs will continue to rise (66%). Voters want Congress to focus on policies that will reduce health care costs, including site-neutral payment reform, hospital billing transparency, and allowing treatment for chronic conditions below the deductible.
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Currently, the cost of health care services and procedures differ based on where the service or procedure is administered, with services at hospitals or hospital-owned doctor’s offices costing more than the same services at independent doctor’s offices or at ambulatory surgical centers. The poll found that 72% of voters with employer-sponsored coverage believe health care could be more affordable by having services performed at less expensive settings when they can be done so safely – for instance performing minor outpatient surgery in a clinic rather than a hospital to lower the cost of the procedure. Paying for the same treatment or care regardless of location is referred to as site-neutral payment reform and the Alliance is very supportive of bipartisan provisions of the Lower Costs, More Transparency Act that take an important step in addressing this problem.
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Voters also believe Congress should require health care providers to accurately report where a service actually occurred so that hospitals can’t charge extra fees for services performed via telehealth or at clinics or doctors’ offices, which costs taxpayers billions of dollars in extra fees. The poll findings show 82% of voters oppose hospital facility fees for care received via telemedicine appointments.
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In addition, 81% of voters indicate that a top priority for Congress should be allowing more preventive care for chronic diseases to be covered by health insurance even before patients meet their annual out-of-pocket deductible. The Alliance strongly supports legislation that would allow employers and health plans to offer more chronic disease prevention pre-deductible, and urges enactment of H.R. 3800, the Chronic Disease Flexible Coverage Act.
“As we celebrate ERISA’s 50th anniversary, it is vital that policymakers recognize that the law makes possible affordable, high-quality employer-provided coverage enjoyed by more than half of all Americans. Two-thirds of voters believe health care is one of the highest priorities before Congress. It is imperative that lawmakers work within ERISA’s framework to lower health care costs for working families,” Klein concluded.
In case you missed it!
Letter to Congress: Keep health care coverage tax-free
June 11, 2024
The undersigned organizations — a diverse group of employers, unions, patient and disease advocacy groups, and health care stakeholders — urge you to firmly reject proposals that would tax employer-provided health care coverage. Congress must protect the foundation and affordability of American health care coverage by keeping employer-provided health care coverage tax free.
Employer-provided health care coverage advances the health and financial security of our nation by providing stable and effective financial protection to workers and their families, nearly 180 million in all, covering more Americans than any other insurance system.
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.
For workers and their families, it promotes health care access and ensures that they are treated equitably wherever they live or work. The cost of health care services often varies significantly based on location. If employees were taxed on the cost of their health coverage, there would be a disproportionate impact on Americans living in parts of the country where costs are higher. 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% 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.
For the federal government, employer-sponsored coverage is a tremendous bargain. For every $1 of tax expenditure – i.e. the individual income tax and employment taxes not imposed on wages for the cost of their employer-sponsored coverage -- employers are investing $5.36[1] in health benefits. Eliminating or reducing the $1 provided by the federal government, would shift additional cost burdens on to employers, employees and their families through income and employment taxes, undermine health coverage, reduce health care purchasing power, and chill health care innovation and investment.
For employers, it plays a pivotal role in attracting and retaining talent. It helps demonstrate a strong commitment to employees by providing vital financial protection for health care needs far more efficiently and cost-effectively than if workers had to research and pay for health coverage as individuals. In addition, employers recognize the value of employee health on the health of their business and that a healthy workforce drives a healthy economy.
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.
Thank you for your attention to this critical matter. We stand ready to support you in protecting tax policy that makes possible the health system through which the majority of Americans receive the health coverage they depend upon every day.
Sincerely,
Click here for list of signers.
[1] Sources: (1) White House Office of Management and Budget, Analytical Perspectives, Budget of the U.S. Government, FY2024, Table 19-2 (March 2023) and (2) U.S. Bureau of Economic Analysis, Employer Contributions for Employee Pensions and Insurance Funds by Industry and by Type, Table 6.11 D (accessed Wed. March 6, 2024).
THE ALLIANCE TO FIGHT
FOR HEALTH CARE
Fighting for Your Health Care
The Alliance to Fight for Health Care is a diverse coalition comprised of businesses, patient advocates, employer organizations, unions, health care companies, consumer groups and other stakeholders that support employer-provided health coverage. Together, we are working to ensure that employer-provided coverage remains an effective and affordable option for working Americans and their families. The coalition, previously working as the Alliance to Fight the 40, led the successful effort to repeal the so-called 40% “Cadillac Tax” on health care coverage.
“The Alliance’s goal is to advance public policy that makes health care more affordable, strengthens job-based coverage and supports continued innovation that delivers value to working families.”