Last Chance: Sign-on Letter to Repeal the Excise Tax

Dear SHRM Chapter Presidents,

To date, 46 SHRM state councils and 106 chapters have signed on to the letter to repeal the excise tax. If you have not already done so, please click HERE to read and sign on to the SHRM chapter and council letter.

SHRM is leading a sign-on letter opportunity , urging the House of Representatives to repeal the anticipated excise tax on high-value, employer-sponsored health coverage.To generate additional support and awareness of this important issue, SHRM has drafted a letter to be sent to House leadership. Our goal is to garner a majority of SHRM chapter and council signatures on this letter to illustrate the breadth and depth of this issue to HR professionals across the United States.

Legislative Status

Two legislative proposals have been introduced in the House of Representatives to repeal the excise tax. Representative Joe Courtney (D-CT) introduced H.R. 2050, the Middle Class Health Benefits Tax Repeal Act of 2015, and Representative Frank Guinta (R-NH) introduced a similar proposal, H.R. 879, the Ax the Tax on Middle Class Americans' Health Plans Act.

SHRM is supportive of both legislative proposals and has sent letters to the sponsors of H.R.2050 and H.R.879.

Background

Beginning in 2018, the Affordable Care Act (ACA) will impose an excise tax, otherwise known as the "Cadillac Tax", on health care plans that 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 employer-sponsored health care plans will likely be subject to the tax. In fact, according to SHRM research survey results released in March, 33 percent of respondents' plans will be hit with the excise tax. For additional information and background on this issue, click here.

Thanks in advance for your consideration and support. If you have any questions regarding the anticipated excise tax or this sign-on letter, please contact Chatrane Birbal, SHRM senior advisor of government affairs at Chatrane.birbal@shrm.org or (703) 535-6476.