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Stop The Excise Tax On Health Benefits
Updated On: Jan 08, 2010 (09:30:00)

The Senate has begun debate on health care reform legislation, the Patient Protection and Affordable Care Act.  This bill would take major steps to address the crisis in the U.S. health care system.  Specifically, it would:


-- Guarantee most Americans access to affordable health insurance coverage.

-- Implement market reforms to prevent individuals from being denied coverage because of pre-existing conditions, and to limit premium differentials based on age and other factors.

-- Reduce costs for individuals and businesses by establishing exchanges to facilitate coverage in a cost-effective manner, eliminating most uncompensated care, and reforming delivery and provider payments systems.

However, the UAW and other unions are deeply concerned this legislation would impose an excise tax on health care plans whose costs exceed certain levels.  This tax would affect tens of millions of workers, including many UAW members.  Instead of curbing "excessive" benefits for corporate executives, it actually would have a discriminatory impact on plans that cover older workers and retirees, or workers in high-cost regions or high-risk occupations.

This unfair new tax is likely to force cutbacks on important health care benefits now enjoyed by millions of Americans, such

as dental and vision care.  It will also increase co-pays and deductibles for medical care.

Instead of imposing a new tax on working families, the Senate should substitute more progressive financing mechanisms.  This includes requiring employers and wealthy individuals to pay their fair share.

Please call your senators right away.  Urge them to support the overall health care reform bill, but to oppose the unfair excise tax on health care benefits.  Emphasize that this misguided proposal will simply force companies to eliminate or reduce health care benefits that currently cover millions of workers.  Tell them to support amendments that would eliminate or scale back this tax on workers' health care benefits.

You can use the following toll-free number to call your senators: (866) 960-0611.

Thanks in advance for your assistance on this priority issue.





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