STATEMENTS LETTERS OF SUPPORT
FOR
THE AMERICAN HEALTH CARE ACT

March 8, 2017
The Honorable Kevin Brady
Chairman, Committee on Ways and Means
U.S. House of Representatives
1102 Longworth House Office Building
Washington, D.C. 20515

The Honorable Greg Walden
Chairman, Committee on Energy and Commerce
U.S. House of Representatives
2205 Rayburn House Office Building
Washington, D.C. 20515

Dear Chairman Brady and Chairman Walden:
I write in support of your efforts to repeal Obamacare and implement numerous reforms toward
creating a patient-centered, free market healthcare system.
Your Obamacare repeal bill abolishes 14 taxes that today siphon off nearly one trillion dollars from
American Taxpayers each decade. The bill also expands Health Savings Accounts, making health care
reform patient-centered rather than top-down command and control. And the reform block grants
Medicaid to the states through a per capita allotment-- a long time Reagan Republican goal to
empower states and reduce federal control.
This legislation is an excellent first step in implementing a healthcare system that works for all
Americans.
Opposition to this legislation means support for the status quo that is Obamacare. This is unsustainable
and reckless. The law has resulted in one-size fits all insurance that is too expensive, despite numerous
government subsidies. Over one thousand counties in the nation have just one insurer participating on
an exchange. Premiums increased by close to 25 percent last year, a trend that will likely only increase
as insurers continue to leave.
Change is clearly needed.
Many lawmakers in Congress have long promised their constituents they would repeal and replace
Obamacare with a cost-effective, patient centered, sustainable alternative. By passing this legislation
they can fulfill this commitment to voters.
Repeal of Obamacare Taxes
When it was signed into law, Obamacare imposed nearly 20 new or higher taxes that hit middle class
families, raise the cost of healthcare, and reduce access to care in Obamacare.
The law imposed a tax for failing to buy government-mandated insurance, a new tax on health
insurance, a tax on medical devices, a tax on innovative medicines, taxes on Health Savings Accounts
and Flexible Spending Accounts, and even a tax hike on Americans facing high medical bills.
This legislation repeals all of these taxes. It also delays the Cadillac tax on employer provided insurance
plans to 2025.
Repealing these taxes will provide much needed relief to the paychecks of families across the country.
Repealing Obamacare will also undo former President Barack Obama’s broken promise not to sign “any
form of tax increase” on any middle class American family.

 Expands Health Savings Accounts
Health Savings Accounts (HSAs) are a key component to ensuring Americans have access to patient
centered health care that best fits their needs and keeps costs low. American families typically pay for
some or their entire healthcare costs indirectly (doctors and hospital visits, medicines and treatments
etc.). HSAs give individuals direct control over these funds so they can make healthcare choices that best
fit their individual needs and in the most efficient way.
Not only does the repeal bill abolish several taxes on HSAs, the law also contains several improvements.
The plan expands the contribution limits for HSAs ($6,550 for individuals and $13,100) so they can now
be relied on to cover more medical costs. The legislation also increases the flexibility of savings accounts
by allowing spouses to make catch-up contributions to HSAs and allows HSAs to cover certain medical
expenses incurred before the saving account has been established.
Implements New, Age-Adjusted Tax Credit
The legislation implements an improved advanced refundable tax credit that is administered based on a
taxpayer’s age ($2,000 for individuals under 30 scaling up to $4,000 for individuals over 60). The credit is
indexed to inflation plus one percentage point and applies to the oldest five individuals in a family. It can
be used by anyone not receiving employee insurance or Medicare/Medicaid and any excess funds from
this credit can be deposited into an HSA.
Compared to the flawed and highly wasteful income based Obamacare tax credit, this new tax credit is
far more efficient and will result in taxpayer dollars being spent far more responsibly.
While some have claimed that this tax credit is an entitlement, it is a common feature of Republican
alternatives to Obamacare. The plan put forward by Senator Rand Paul (R-Ky.) contains tax credits, as
does the plan released by HHS Secretary Tom Price when he was in Congress. All of these plans contain
tax credits because they are vastly superior to other alternatives such as a straight subsidy.
Enacts Medicaid Reform
The existing fiscal trajectory of Medicaid is unsustainable. Obamacare expanded Medicaid to millions of
able-bodied adults, an approach with high costs and low outcomes.
The House legislation addresses this by block granting Medicaid to the states through a per capita
allotment. This approach will control federal spending and ensure states retain flexibility to implement a
system that best fits their individual needs. Streamlining the funding process will not only ensure that
Medicaid enrollees have access to more appropriate care, it will also cut down on waste, and promote
more efficient allotment of resources.
Addresses Obamacare’s Insurance Regulations
The legislation reduces the impact of many Obamacare insurance regulations. Most notably, the bill
zeroes out the individual mandate and employer mandate tax penalties. Under the House repeal bill,
these mandates become suggestions with no enforcement mechanism.
The bill also increases coverage options by repealing actuarial standards of Obamacare plans and
permits changes to age-based ratings to give insurers greater flexibility over costs.

 In other cases, this bill does not repeal or modify insurance regulations, because doing so would mean
the bill is no longer reconciliation compliant and thus would be unable to pass the Senate under a simple
majority. Adding new insurance regulation provisions means a 60 vote threshold in the Senate, which
makes it virtually impossible to pass repeal legislation.
In these cases, HHS Secretary Price has the authority to loosen or undo regulations. Numerous sections
of federal law grant the Secretary broad discretion to reinterpret federal law including what counts as a
“qualified health plan” or “essential benefits,” or to grant states “innovation waivers” to Obamacare
requirements.
Onward,

Grover G. Norquist
President, Americans for Tax Reform

 CHAMBER

OF

COMMERCE

OF THE

UNITED STATES

OF

NEIL L. BRADLEY

AMERICA
1615 H STREET, NW
WASHINGTON, DC 20062
(202) 463-5310

SENIOR VICE PRESIDENT &
CHIEF POLICY OFFICER
GOVERNMENT AFFAIRS

March 7, 2017

The Honorable Greg Walden
Chairman
Committee on Energy and Commerce
U.S. House of Representatives
Washington, DC 20515

The Honorable Kevin Brady
Chairman
Committee on Ways and Means
U.S. House of Representatives
Washington, DC 20515

The Honorable Frank Pallone
Ranking Member
Committee on Energy and Commerce
U.S. House of Representatives
Washington, DC 20515

The Honorable Richard Neal
Ranking Member
Committee on Ways and Means
U.S. House of Representatives
Washington, DC 20515

Dear Chairmen Walden and Brady and Ranking Members Pallone and Neal:
The U.S. Chamber of Commerce supports the 2017 House Reconciliation Legislative
Recommendations. Critically important provisions in the Recommendations repeal a substantial
number of the most harmful provisions in the Affordable Care Act: the health insurance tax, the
medical device tax, and the tax on prescription medications; restrictions on the use and
limitations on contributions to health savings accounts and flexible spending accounts; and the
penalties associated with the employer mandate.
Just as importantly, the Recommendations preserve the longstanding tax treatment of
employer sponsored coverage through which 177 million individuals receive their health care
coverage. The Chamber is also pleased that the House is proposing to delay the 40 percent
Cadillac tax, and we look forward to working with Congress to eventually repeal the tax
completely.
These Recommendations and the successful mark-up of the provisions in the Ways and
Means and Energy and Commerce Committees tomorrow are absolutely critical in taking steps
to restore choice, flexibility and innovation to the nation’s health care markets. The Chamber

 looks forward to working with the House and Senate to refine and advance these and other
important reform proposals.
Sincerely,

Neil L. Bradley
cc: Members of the Committee on Energy and Commerce
Members of the Committee on Ways and Means

 PRESS RELEASE

NTU Applauds Release of GOP's Health Care
Plan
March 7, 2017 / share:

National Taxpayers Union (NTU), the nation’s oldest taxpayer advocacy organization, applauds
the release of the House Republicans’ health care plan.
Brandon Arnold, NTU’s Executive Vice President, stated: “The American Health Care Act is an
important first step toward fully repealing Obamacare and replacing it with a patient-centered,
free market solution for all Americans. It contains bold provisions that would reduce taxes,
empower individual health care consumers, shift power from Washington to state capitals, and
restrain government overreach.
“Taxpayers should be particularly pleased to see that nearly all of the Obamacare tax increases
will be repealed upon passage of this bill. Tax hikes like the health insurance tax, the “medicine
cabinet” tax, the medical device tax, and the prescription drug tax have all increased the cost of
health care to the great detriment of consumers. Getting rid of all of these is a big victory for
taxpayers. Additionally, the bill would scrap the egregious individual and employer mandates,
which effectively act as taxes.”
Some conservatives have expressed concern about the bill’s inclusion of a means-tested tax
credit that would be provided to individuals who do not have access to insurance through their
employers or via government programs. However, this is an appropriate way to empower
individuals and families as the system transitions away from Obamacare’s complex,
cumbersome credits and government-imposed mandates. As Arnold notes, “The tax credit will
put consumers, instead of the federal government, in charge of their own insurance options.
Making this tax credit advanceable and refundable ensures that all Americans – regardless of
their level of income – will have access to affordable insurance. This is particularly important for
assisting workers with limited financial means.”
Arnold acknowledged that the legislation is far from perfect. He stated, “To be sure, there is
much more work to do. This legislation does not repeal all of Obamacare’s regulations and
leaves in place the so-called ‘Cadillac tax’ on higher-cost insurance plans.”
“This bill is a necessary first step in a long process to repeal and replace Obamacare," Arnold
concluded. NTU hopes Congress will promptly send the legislation to the President’s desk and
continue working to implement critical, free market health care policies on behalf of American
taxpayers.”

 March 7, 2017

The Honorable Paul Ryan, Speaker
U.S. House of Representatives
Washington, DC 20515
Dear Mr. Speaker:
The National Association of Wholesaler-Distributors (NAW) is pleased to support the package of
legislative recommendations to be included in a Fiscal 2017 reconciliation bill, unveiled on March 6,
2017 by House Republicans.
NAW is the “national voice of wholesale distribution,” an association comprised of employers of all
sizes, and national, regional, state and local line-of-trade associations spanning the $5.6 trillion
wholesale distribution industry that employs more than 5.9 million workers in the United States.
Approximately 40,000 enterprises with places of businesses in all 50 states and the District of
Columbia are affiliated with NAW.
NAW believes that our nation’s health care system is overly burdened by government mandates and
taxes and that movement toward a more market-oriented, patient-centered system is the surest path
toward higher quality, lower cost and enhanced access. This package represents real progress in this
regard, strengthening our private, voluntary employment-based health benefits system which
currently provides coverage to approximately 177 million Americans.
Clearly, the employment-based system serves the interest of working Americans and their
employers. Innovation in private sector health plan design plays a major role in controlling cost as
employers seek to manage the impact of health spending (that continues to escalate more rapidly
than inflation) on their bottom lines and, at the same time, provide their employees with high quality
coverage and access to medical care.
In particular, NAW members are pleased that the reconciliation recommendations include:





Repeal of the employer mandate penalties
Repeal of the annual fee on health insurers (the “health insurance tax” or HIT”)
Repeal of the medical devise tax
Liberalized treatment of health savings accounts (HSA) and flexible spending accounts
(FSA)

NAW members also support the recommended delay until 2025 in the implementation of the 40%
excise tax on high-cost employer-sponsored coverage (the “Cadillac Tax”). Our membership prefers
the full and permanent repeal of the Cadillac Tax, and we look forward to working with you and
your colleagues toward that end as the legislative process unfolds.
-moreNATIONAL ASSOCIATION OF WHOLESALER-DISTRIBUTORS
1325 G Street N.W., Suite 1000, Washington, DC 20005  202-872-0885  FAX: 202-785-0586  www.naw.org

 March 7, 2017
Page 2 of 2

Critically, these reconciliation recommendations wisely avoid any limitation on the tax exclusion for
employer-sponsored health benefits. A recent survey of NAW-affiliated wholesaler-distributors
revealed that over 90% offer some form of employer-subsidized health benefits to their employees
and that nearly 3 in 5 of those employers would cut back on or eliminate their health benefits
offerings were “Federal legislation diminishing current law tax treatment of employer-sponsored
coverage/insurance to be enacted.”
Mr. Speaker, NAW urges the enactment of this package of FY ’17 reconciliation recommendations.
Thank you for your leadership and for your consideration of NAW’s views.
Sincerely,

James A. Anderson, Jr.
Vice President-Government Relations

cc: Members of the U.S. House of Representatives

 The ERISA Industry Committee 
The Only National Association Advocating Solely for the Employee Benefit and Compensation Interests of America’s Largest Employers 
1 4 0 0   L   S t r e e t ,   N W ,   S u i t e   3 5 0 ,   W a s h i n g t o n ,   D C   2 0 0 0 5                          ( 2 0 2 )   7 8 9 ‐ 1 4 0 0                  w w w . e r i c . o r g   
 
James P. Gelfand, Senior Vice President, Health Policy

March 7, 2017
The Honorable Paul Ryan
Speaker of the House
U.S. House of Representatives
Washington, DC 20515
Dear Speaker Ryan,
The ERISA Industry Committee (ERIC) is pleased to support the advancement of reconciliation measures collectively
referred to as the “American Health Care Act” (AHCA), and urges action in the U.S. Senate to include full and permanent
repeal of the dangerous 40 percent “Cadillac” excise tax on employer-sponsored health benefits.
ERIC is the only national association that advocates exclusively for large employers on health, retirement, and
compensation public policies at the federal, state, and local levels. We advocate for policies that empower employers to
offer quality benefits to working families, and help control the costs of health insurance and health care services. We
believe AHCA includes a number of provisions that will enhance the ability of employers to offer benefits, reduce taxes
that are passed on to health care purchasers and consumers, and prevent cost-shifting by stabilizing the individual markets.
Some of the most critical components of the legislation include:






Repeal of the employer mandate, paving the way for Administrative action to eliminate the costly, pointless, and
overly burdensome reporting requirements under ACA sections 6055 and 6056;
Repeal of numerous taxes that raise the costs of health insurance and health care, such as the taxes on
pharmaceuticals, over-the-counter medicines, and limitations on Flexible Spending Accounts (FSAs);
Expansion of and improvements to Health Savings Accounts (HSAs), especially increasing the annual HSA
contribution limit to match the annual maximum out-of-pocket cost;
Targeted funding and new flexibility for insurance rules in order to stabilize the individual markets; and
Further delaying the Cadillac tax, with indications from staff that the intention is to fully repeal this toxic tax
when the legislation is considered on the Senate floor.

ERIC appreciates House leadership’s decision to jettison a provision included in previous drafts to impose a tax on
workers that receive health coverage from their employers. That proposal, to implement a cap on the tax exclusion for
employer-sponsored insurance, would have serious negative impact on the employer-sponsored health insurance which
covers 178 million employees and families. We urge you to promptly complete full and permanent repeal of the Cadillac
tax, and ensure that the bill going to the President does not subject employers and employees to taxation.
We applaud your efforts so far, and look forward to working with you to support the enactment of final legislation into
law.
Sincerely,

James P. Gelfand
Senior Vice President, Health Policy

 

 FOR IMMEDIATE RELEASE
March 7, 2017

Contact: John Hart
press@onenationhealth.org

One Nation Health Coalition Congratulates
the House on a Critical Milestone
(WASHINGTON, D.C.) – Dave Hoppe and David Wilson with the One Nation
Health Coalition released the following statement today in support of the
American Health Care Act:
“We congratulate Chairman Brady, Chairman Walden and their colleagues for
reaching this important milestone. The American Health Care Act builds on
more than two decades of work to improve health care for all Americans. It
reflects the best ideas about how to lower costs and improve access within a
patient-centered system. By focusing on you – the individual – Congress can
improve care for all.
“President Trump is right that action is a necessity, not a choice. Obamacare is
collapsing. Across America costs are skyrocketing while access and choices
are disappearing. The House has seized this important opportunity to get health
care reform right.
“This proposal begins the process of developing legislation to create a new
patient-centered free market system to help Americans get better access,
benefits, and choices at costs people can afford. Difficult work remains for

 Congress and the administration. In fact, this bill reflects a principled
compromise among new ideas that have already been offered. That’s precisely
what our founders envisioned. Setting politics aside and working together to do
what is best for the American people – expanding access, benefits, choices,
health savings, responsibility and rewards, for all, centered in the doctor-patient
relationship – should be our common goal. The American Health Care Act is
an important step that puts patients and families first.”

###

About One Nation Health Coalition:

The One Nation Health Coalition is a non-profit coalition and foundation
dedicated to promoting a highly effective health care policy that actively invests
in the improved health and health care of every American; delivering the four
principals of success: access, benefits, choices, health savings, responsibility
and rewards, For You, and For ALL.

As Kim Strassel recently wrote in the Wall Street Journal, the One Nation
Health Coalition is:
“[A] fast-growing collection of elected officials, staffers, grass-roots groups,
think tanks, trade associations, donors and corporations” committed to
supporting the effort to repeal and replace the Affordable Care Act.
The One Nation Health Coalition believes “health care is a policy challenge that
must unite us rather than divide us … By putting people, not politics, at the
center of health care we will get reform right. Repealing and replacing the
current law isn’t enough. Both parties should aspire to build the best health care
system the world has ever known for you, and for all. As a people, we must

 demand nothing less, not just for ourselves, but also for the country and our

children.?

March 7, 2017
The Honorable Greg Walden
Chairman
Committee on Energy & Commerce
2125 Rayburn House Office Building
Washington, DC 20515

The Honorable Kevin Brady
Chairman
Committee on Ways & Means
1102 Longworth House Office Building
Washington, DC 20515

Dear Chairman Walden and Chairman Brady,
On behalf of the 1.3 million members of AMAC, the Association of Mature American Citizens, I am
writing in support of the American Health Care Act, or the reconciliation recommendations to repeal and
replace the Patient Protection and Affordable Care Act (Obamacare). The provisions embodied in this
Act are a vital, first step in the legislative process to completely repeal and replace Obamacare.
Millions of seniors were promised time and again by the Obama Administration that they could keep
their health plans and they could keep their doctors. The last six years have proved those promises false,
and millions of seniors have been forced off their health plans and out of their doctors’ offices. For
years, AMAC has repeatedly called on Congress to repeal the Obama Administration’s failed health care
law, and to put the power of health care choices back into the hands of patients. As a starting point, this
bill lays the necessary foundation for more robust and necessary changes to repeal Obamacare in its
entirety.
AMAC stands behind several provisions within this bill—all of which cannot be enumerated in this
short letter. First, this bill expands the capabilities and use of Health Savings Accounts (HSA) to meet
the needs of a modernizing society and the needs of individuals and families. Second, the
recommendations repeal both the individual and employer mandates which have unnecessarily cost
Americans millions of dollars and stymied small businesses. Lastly, this bill does not “pull the rug out”
from those currently on the Obamacare exchanges through its built-in protections for current
beneficiaries. Given the constraints of the Reconciliation process, this bill seeks to offer versatility in
health care funding mechanisms, relieve Americans from unnecessary taxation, and keep as many
Americans insured as possible.
While changes will inevitably happen as markups and amendments are made, we strongly urge
Republican law makers to keep their promise to fully repeal and replace Obamacare. We applaud House
Leadership, Chairman Walden, Chairman Brady, and their respective staffs for keeping the American
public as informed as possible about something so deeply personal to all of us. As an organization
committed to representing the interests of mature Americans and seniors, AMAC is dedicated to ensuring
senior citizens’ interests are protected. While this bill is far from perfect, AMAC is heartened by Congress’s

 effort to improve access to health care, improve innovation, and give America’s seniors peace of mind that
their health care will be protected. For the foregoing reasons, AMAC is pleased to offer our support.

Sincerely,
Dan Weber
President and Founder of AMAC

_____________________________________________________________________
Association of Mature American Citizens · www.amac.us · 888.262.2006

 AdvaMed Statement on House Reconciliation Legislation
WASHINGTON, D.C. – The Advanced Medical Technology Association (AdvaMed) issued the
following statement from President and CEO Scott Whitaker after introduction of reconciliation
legislation in the U.S. House of Representatives:
“AdvaMed commends the House Ways and Means Committee for moving forward with
legislation that will permanently repeal the medical device excise tax. Bipartisan majorities in
both the House and Senate are on record in support of repeal of this onerous tax, which has
been associated with a significant loss of American jobs. Recent data from the U.S. Commerce
Department showed that the medical technology industry experienced a decline of nearly
29,000 U.S. jobs while the tax was in effect. Conversely, an analysis by the American Action
Forum demonstrated that permanent repeal of the tax could result in excess of 53,000
additional industry jobs, compared to what would occur if the tax remains in effect. Repealing
the tax will provide medical technology innovators with the long-term certainty necessary to
support future job growth and sustainable, cutting-edge R&D that will ultimately lead to the next
generation of breakthroughs in patient care and treatment. We urge the House and Senate to
act expeditiously to pass this important legislation.”
###
AdvaMed member companies produce the medical devices, diagnostic products and health information systems
that are transforming health care through earlier disease detection, less invasive procedures and more effective
treatments. AdvaMed members range from the largest to the smallest medical technology innovators and
companies. For more information, visit www.advamed.org.

 1333 H Street, NW
Suite 400W
Washington, DC 20005
Phone (202) 354-7171
Fax (202) 354-7176
www.medicaldevices.org

March 7, 2017
The Honorable Kevin Brady
Chairman, Committee on Ways & Means
United States House of Representatives
1102 Longworth House Office Building
Washington, D.C. 20515

The Honorable Greg Walden
Chairman, Committee on Energy & Commerce
United States House of Representatives
2125 Rayburn House Office Building
Washington, D.C. 20515

Dear Chairman Brady and Chairman Walden,
I write to you today on behalf of the hundreds of innovative companies represented by
the Medical Device Manufacturers Association (MDMA). MDMA thanks the House of
Representatives for working to strengthen medical technology innovation by removing a
major roadblock towards improving patient care. The “American Health Care Act”
repeals the medical device tax which will result in greater investments in medical cures,
lower healthcare costs and more high-tech manufacturing jobs in communities across the
United States. The two year suspension of the medical device excise tax has resulted in a
powerful boost in job creation and innovation following the devastation that the device
tax caused when it was in place, and it is critical that we permanently end this onerous
policy.
MDMA represents nearly 300 medical technology companies, and our mission is to
ensure that patients have access to the latest advancements in medical technology, most
of which are developed by small, research-driven medical device companies. According
to the Department of Commerce, 80 percent of medical device companies have fewer
than 50 employees and 98 percent have fewer than 500 employees.
Since the medical device tax was first proposed in 2009, MDMA shared our grave
concerns with Congress about the negative impact this policy would have on job creation,
R&D and patient care. Our members never agreed to the tax and we have consistently
opposed it. Sadly, much of what we predicted came true when the medical device tax
was enacted into law. In fact, the latest figures from the U.S. Department of Commerce
showed that this dynamic industry lost nearly 29,000 jobs while the device tax was in
place.
Fortunately, in an overwhelming bipartisan vote Congress passed a two year suspension
of the medical device tax that started in 2016, and the additional resources allowed
America’s med tech innovators and entrepreneurs to improve job creation and patient
care. MDMA conducted a survey of some of the United States’ most innovative and
entrepreneurial medical device innovators to assess how the two-year suspension of the
medical device tax impacted their operations. Respondents showed that various steps
have been taken, including company-wide raises, increased 401(k) matches, paid leave
and much more.

 The survey consisted of responses from over 100 medical technology executives, and the
top findings included:
 70 percent of companies increased hiring and created new jobs as a result of
the suspension
 73 percent of pre-revenue companies noted that suspension of the device tax has
improved the climate for raising capital and funding
 When asked how much respondents have increased their R&D budget, the
average increase was 19 percent
Most notably, three out of four innovators said that they would make additional
investments in job creation and R&D if the device tax was permanently repealed, as
opposed to a temporary suspension. Due in large part to medical technology innovation,
between 1980 and 2000, life expectancies increased by 3.2 years, and death rates dropped
by 16 percent. At a time where we need more high tech manufacturing and solutions to
the challenges facing the health care system, it is critical that we have policies in place
that will support innovation, and empower entrepreneurs. Permanently and fully
repealing the medical device tax will do just that.
MDMA remains dedicated to working with Congress and the diverse coalition of
stakeholders to get a full and permanent repeal of the device tax across the finish line,
and we thank you for your leadership on this important policy goal.
Sincerely,

Mark B. Leahey
President & CEO, MDMA

Cc:
The Honorable Paul Ryan, Speaker of the House of Representatives
The Honorable Kevin McCarthy, Majority Leader
The Honorable Steve Scalise, Majority Whip

 POSITIVE FEEDBACK
FOR
THE AMERICAN HEALTH CARE ACT

"We appreciate the work that the administration and Congress have undertaken
so far to begin stabilizing the individual market, and we are very pleased that the
House bill envisions providing a smooth transition for consumers in 2018 and
2019, including making coverage more affordable by eliminating the tax on health
insurance policies," Alissa Fox, a senior vice president for Blue Cross Blue Shield
Association,

 STATEMENT

March 7, 2017

Contact: Anita Brikman
202.263.9640

Statement from the Consumer Healthcare Products Association

WASHINGTON, D.C. – The Consumer Healthcare Products Association (CHPA) issued the
following statement from President and CEO Scott Melville after introduction of reconciliation
legislation in the U.S. House of Representatives:
“CHPA strongly supports restoration of the ability for consumers to use their Flexible Spending
Arrangements (FSAs) and Health Savings Accounts (HSAs) to purchase over-the-counter (OTC)
medicines, and urges the Ways & Means Committee to advance this important measure.
According to a survey conducted by Harris Poll on behalf of CHPA, the majority of Americans
(75%) favor including OTCs in FSAs and HSAs. Since 2011, a provision in the Affordable Care Act
(ACA) took away the ability of consumers to use their tax-preferred HSA and FSA dollars to
purchase OTC medicines, unless they first received a prescription. At a time when more and
more Americans are exercising these vital HSA and FSA benefits, this is a common sense fix for
many families who rely on non-prescription OTC medicines to treat common ailments such as
allergies, cough and colds, or pain.”

###

The Consumer Healthcare Products Association (CHPA) is the 136-year-old national trade
association representing the leading manufacturers and marketers of over-the-counter (OTC)
medicines and dietary supplements. Every dollar spent by consumers on OTC medicines
saves the U.S. healthcare system $6-$7, contributing a total of $102 billion in savings each
year. CHPA is committed to empowering self-care by preserving and expanding choice and
availability of consumer healthcare products. chpa.org

 NEWS RELEASE
NR 2017-10
American Benefits Council statement on GOP health proposal
WASHINGTON, D.C. — March 6, 2017 — "The

American Health Care Act,
released today, wisely avoids a new tax on Americans with employerprovided health benefits," American Benefits Council President James
A. Klein said today. "We applaud that decision and we are also
pleased the Cadillac Tax effective date is delayed through 2024," Klein
said.
"We understand that a budget rule technicality presents an obstacle
to permanent repeal of the Cadillac Tax on a budget bill. When this
same problem arose in 2015, the Senate acted to overcome this
obstacle with a 90-10 vote to make repeal permanent.
"It is imperative that Congress again overcome this obstacle to ensure
permanent repeal of the Cadillac Tax and also resist any efforts to
revive proposals to cap the tax exclusion for employer-sponsored
health benefits," Klein added.
"The Council appreciates that the proposal zeroes-out the Affordable
Care Act's (ACA) employer mandate penalties and we will continue to
work with Congress to ensure final legislation reduces employer
reporting and other ACA burdens," Klein concluded.
For more information on health reform legislation, or to arrange an
interview with Klein or the Council's health policy team, contact Jason
Hammersla, Council senior director of communications, at

 jhammersla@abcstaff.org or by phone at 202-289-6700 (office) or
(202) 422-4652 (cell).
###

The American Benefits Council is the national trade association for companies concerned about federal
legislation and regulations affecting all aspects of the employee benefits system. The Council's members
represent the entire spectrum of the private employee benefits community and either sponsor directly or
administer retirement and health plans covering more than 100 million Americans.
Notice: the information contained herein is general in nature. It is not, and should not be construed as,
accounting, consulting, legal or tax advice or opinion provided by the American Benefits Council or any of
its employees. As required by the IRS, we inform you that any information contained herein was not
intended or written to be used or referred to, and cannot be used or referred to (i) for the purpose of
avoiding penalties under the Internal Revenue Code, or (ii) in promoting, marketing or recommending to
another party any transaction or matter addressed herein (and any attachment).
This e-mail may contain confidential information. If you are not the intended recipient, please advise by
return e-mail and delete immediately the email without reading or forwarding to others.

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