ACA Update: Opposing Employer Health Taxes

SIIA Maintains Clear Voice in Opposing Employer Health Taxes

January 9 - Joining 32 national associations, the Self-Insurance Institute of America, Inc. (SIIA) recently made clear to Congress its long-standing opposition to the Cadillac Tax, and urged policymakers to oppose additional efforts to create other tax burdens upon the employer based health care system. This action is part of a larger advocacy campaign to strengthen and protect the availability of employer sponsored health benefits.

In order to offset costs, the Affordable Care Act (ACA) included a 40 percent excise tax on certain health benefits. Within a matter of years this burdensome excise tax, commonly referred to as the ‘Cadillac Tax’, is expected to hit the vast majority of employees and employers without action by Congress. In addition, the imposition of such an excise tax would impose a costly administrative burden on self-insured employers and TPAs.

While SIIA participated in coalition activities last year which successfully sought a moratorium on the implementation of the Cadillac Tax until 2020, the clear advocacy goal has been to eliminate the tax all together to ensure the continued ability of employers to self-insure.

As we enter another major policy debate on the repeal and replacement of the ACA, SIIA has continued to oppose additional tax measures that would negatively impact the ability of the self-insured industry to offer efficient and cost-effective health care benefits to millions of employees. Taxing such benefits would not only lead to decreased health insurance options for those already covered, but decrease the availability of health benefits and innovation that come with it.

SIIA remains committed to a health system based on the successful foundation of employer sponsored health care. To that end, please look out for the upcoming release of SIIA’s white paper on self-insured employer health care.

For further information, please contact Ryan Work, vice president of government relations, at