The Republican Health Care Repeal Bill Undermines Employer Benefits

The Republican health care repeal bill passed out of the House of Representatives this month attacks health insurance coverage for all Americans.

For union members with employer coverage, this bill opens up new loopholes to reduce coverage while preserving a devastating tax on our benefits.

1. Eliminates penalties on employers that drop coverage: Dropping the employer mandate means that non-union employers in our industries will erode benefits standards by dropping coverage. The Congressional Budget Office found that 3 million people would lose their employer health coverage under this bill.
2. Opens new loopholes for employers to weaken coverage: This bill will open up a new loophole for employers that maintain coverage. Employers will be able to end cost sharing caps that protect employees from catastrophic illness. This means even those with employer coverage could be vulnerable to medical bankruptcy.
3. Preserves taxes on employer health plans: This bill eliminates taxes on insurers, drug companies, employers, millionaires, and even tanning salons. However, it only delays the 40% tax on employer health plans. This tax would hit our plans in 2025 and force employers to increase cost sharing to avoid penalties.

In addition to attacking our employer benefits, this bill undermines retirement security by cutting $117 billion from Medicare. This will force the program to spend off its accumulated trust fund by 2024 and setup painful cuts for seniors in the near future. Eliminating these Medicare funds will pay out a $7 million tax cut every year to each of the 400 wealthiest families in America.

This bill is currently being considered in the US Senate. Click here or dial 1-855-980-2231 and tell your Senator to oppose the health care repeal bill.

Links:

H.R. 1628, American Health Care Act of 2017 (Congressional Budget Office, May 24, 2017)

GOP Bill Could Undercut Some Coverage In Job-Based Insurance (NPR, May 23, 2017)

Paying for an ACA replacement becomes near impossible if the law’s tax increases are repealed (Brookings Institute, December 19 2016)

ACA Repeal Would Lavish Medicare Tax Cuts on 400 Highest-Income Households (Center on Budget and Policy Priorities, January 12, 2017)