PACT Joins 70 Organizations to Urge Congress to Keep Employer-Provided Coverage Tax-Free

WASHINGTON, D.C. – This week, Protecting Americans’ Coverage Together (PACT), a coalition of employer voices dedicated to strengthening employer-provided coverage, joined 70 leading organizations in urging Congress to protect the affordability of health care coverage for Americans and reject proposals to tax employer-provided coverage.

In a letter to Congressional leaders, PACT and the other organizations, including a diverse group of employers, unions, patient advocacy groups, and health care stakeholders, demonstrated the widespread support for maintaining employer-provided coverage as well as the economic and health care benefits in keeping the system tax-free. The signatories write:

“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.”

The letter also highlighted PACT polling, which found that American workers place tremendous value on their workplace health benefits and underscored the value employers place in providing this benefit.

“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 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.”

The organizations concluded the letter by urging Congress to take steps to protect employer-provided coverage and the quality care provided to the 160 million Americans who rely on it.

“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.”

To read the full letter, click here.

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The Protecting Americans' Coverage Together campaign is a coalition that includes the U.S Chamber of Commerce, Business Roundtable, Vermeer Corporation, The National Association of Manufacturers and Council for Affordable Health Coverage. PACT represents leading employer voices focused on strengthening employer-provided coverage and benefits that American families depend on for their health.