Join Myrtle Beach firefighters in effort to repeal tax

Re: Sept. 1 editorial, “Cadillac tax’ Portion of Affordable Care Act is the next target”

I just want to make it clear that the local firefighters’ union, the Myrtle Beach Professional Fire Fighters Association (MBPFFA), International Association of Fire Fighters (IAFF) Local 2345 supports the repeal of the “Cadillac tax.”

The MBPFFA encourages Myrtle Beach citizens to support Rep. Joe Courtney, D-CT. Proponents of the tax argue that high-cost health cover a wide range of test and treatment options, while requiring little or no co-pay, and thereby encouraging overuse of health services.

The law’s solution to this is to discourage insurance companies from selling these high cost plans by posing a 40 percent excise tax on health plans that exceed a certain annual limit. Beginning in 2018, individuals’ plans that cost more than $10,200 and family coverage that exceeds $27,500, will be assessed a 40 percent tax on any amount above those caps.

While few health plans currently exceed the caps, opponents of the excise make note that it will influence more and more of these types of plans over time. Under current law, the cap increases at the consumer price index, which is far below the historic rate of health care inflation. As a result, opponents’ claim that the “Cadillac Tax” should be renamed the “Chevy” tax, since even the modest plans will breach the caps in coming years. Nevertheless, employers with higher premiums will be inclined to cut benefits and leave employees with fewer options.

The Courtney Bill is legislation that will amend the internal Revenue Code 1986 and repeal the excise tax. This legislation would rescind the excise tax on high cost employer-sponsored health plans. The MBPFFA would appreciate your petitioning our South Carolina delegation in Congress to support the Rep. Courtney legislation.

This story was originally published September 6, 2015 at 11:59 AM with the headline "Join Myrtle Beach firefighters in effort to repeal tax."