MSCI Tells U.S. Lawmakers Not To Tax Employee Healthcare Benefits

The Metals Service Center Institute (MSCI) joined the Alliance to Fight for Health Care and nearly 70 other business organizations, employers, labor unions, patient and disease advocacy groups, and healthcare stakeholders to send a letter reminding members of Congress about the value of employer-provided healthcare coverage and explaining why it should remain tax-free.

The letter comes after several legislative proposals have been offered or considered in the U.S. House and Senate that would tax employer-provided healthcare coverage even though employee-sponsored healthcare coverage has never been recognized as income to the employee and would result in increased taxes on millions of American families.

The letter, which is available here, argued, “In addition to broad societal benefits and underpinning the stability of our healthcare system, the current tax-favored treatment of employer-provided health coverage delivers critical value for employers, workers and their families, and the federal government itself.” Taxing benefits would not lower the cost healthcare, the letter said, but would reduce healthcare access.

For workers and their families, employer-sponsored healthcare promotes healthcare access and ensures they are treated equitably wherever they live or work. Indeed, the cost of healthcare services often varies significantly based on location. If employees were taxed on the cost of their healthcare coverage, there would be a disproportionate impact on Americans who live in areas of the country where costs are higher.

The letter also noted U.S. workers values these benefits. Polling has indicated 96 percent of workers view their employer-provided health insurance as important to them. Employees also are satisfied with the coverage they receive from their employers.

The Alliance to Fight for Health Care is a broad-based coalition comprised of businesses, patient advocates, employer organizations, labor unions, healthcare companies, consumer groups, and other stakeholders that support employer-provided health coverage. The Alliance works to ensure employer-provided coverage remains an available and affordable option for working Americans and their families. Read more about them here.