Repeal of 40% Tax on High-Cost Health Benefits Vital to Improving Health Care

WASHINGTON — Today, the House voted with bipartisan support to pass H.R. 748, the Middle Class Health Benefits Tax Repeal Act of 2019, sponsored by Rep. Joe Courtney (D-Connecticut), which repeals the burdensome 40% tax on employer sponsored high-quality worker and retiree health benefits. In response, AFSCME President Lee Saunders issued the following statement:

“We applaud the House on voting to repeal this regressive health tax. Although this tax does not take effect for another 2 1/2 years, it is already forcing employers to reduce worker and retiree health benefits – raising medical copays, deductibles and other out-of-pocket health expenses. It is also hurting AFSCME members and public service workers who are negotiating contracts that will extend into or beyond 2022. Working families are struggling to afford health care and millions still live without coverage. Congress needs to be working on solutions to bring down costs, not raise them. It is urgent that the Senate act swiftly to repeal this 40% health tax.”