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NAIFA has joined forces with 70 organizations, employers, unions, patient and disease advocacy groups, and other healthcare stakeholders to emphasize the importance of maintaining the tax-free status of employer-provided healthcare coverage. In a united front, these organizations reminded Congress of the critical role this coverage plays in ensuring the health and financial security of nearly 180 million Americans.

In their press release, the Alliance to Fight for Health Care cited the societal and economic benefits of employer-provided health coverage. James A. Klein, president of the American Benefits Council, said that taxing employment-based health care would lead to less coverage and potentially worse health outcomes. He argued that such proposals have consistently been unpopular with Americans and would destabilize the health care system.

 In a letter addressed to Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, Speaker of the House Mike Johnson, and House Minority Leader Hakeem Jeffries, the coalition urged Congress to reject any proposals to tax employer-provided health care coverage. The letter outlined several key points:

  •  Broad Coverage: Employer-provided health care covers more Americans than any other insurance system, ensuring financial protection for nearly 180 million workers and their families.
  • Economic Value: The tax-favored treatment of this coverage is essential for both employers and the federal government, delivering significant value and promoting health care access.
  • Equity and Stability: Taxing health care coverage would disproportionately affect Americans in higher-cost areas, undermining the stability of the health care system.
  • Employer Benefits: Employers rely on these benefits to attract and retain talent, recognizing the vital role of employee health in driving economic productivity.

Prospects: NAIFA’s participation in this coalition underscores our commitment to protecting the financial and health security of American workers. By joining this effort, NAIFA is advocating for policies that maintain and enhance the effectiveness of employer-provided health care coverage. The coalition's unified voice aims to ensure that Congress upholds the tax-free status of these benefits, recognizing their critical importance to millions of Americans.

 NAIFA Staff Contacts: Michael Hedge – Senior Director – at mhedge@naifa.org.