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NEA welcomes Clinton’s support to repeal excise tax on high-cost plans

WASHINGTON - September 30, 2015 -

The National Education Association today enthusiastically welcomed the announcement from Secretary Hillary Clinton that she supports repeal of the 40 percent excise tax on high-cost plans, a misguided provision of the Affordable Care Act. NEA strongly supports congressional efforts to repeal this tax.

NEA President Lily Eskelsen García issued the following statement:

“We challenge every candidate for president to join in this effort to repeal this tax and avoid inflicting harm on American workers and their families.

“NEA has a long history of fighting the discriminatory impact of government policies — from women's suffrage to gender-based employment discrimination to pay equity and now the battle to ensure that women aren’t taxed higher than men simply because they happen to be in a health plan comprised mostly of women.”

In April, NEA released an actuarial report showing that although the excise tax is often referred to as a tax on overly generous health benefits, the tax is likely to be driven by other things—including where health plan members live, their age and their sex. The excise tax wrongly equates high premiums with generous health benefits. It is so flawed, in fact, that some health plans offering moderate benefits will face a steep tax, while plans with better benefits may not face any tax at all. Similarly, a plan for workers who live in a city with high health care costs might generate a large tax, while workers with the exact same health benefits in a lower-cost area might cause no tax.

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The National Education Association ( is the nation's largest professional employee organization, representing more than 3 million elementary and secondary teachers, higher education faculty, education support professionals, school administrators, retired educators and students preparing to become teachers.

CONTACT: Miguel A. Gonzalez


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