The House of Representative members are not happy with the possible regulation of the Cadillac tax, a 40 percent tax on the cost of an employer-sponsored health insurance over a certain amount ($10,800 for self-only coverage and $29,100 for family coverage).

Last week, The Alliance to Fight the 40 — a coalition made up of public and private employer organizations, patient advocates, businesses, unions, and other stakeholders — announced more than 300 members of the House, or 70 percent, had signed legislation to repeal the tax.

“This tax does not just affect high-value plans. It will hit workers, retirees and families with ordinary coverage who have the misfortune to suffer catastrophic health events or have chronic conditions that are expensive to treat,” said James A. Klein, president of the American Benefits Council, in a statement.

“We thank all the House members who recognize the harmful effects of this tax and are working to protect the benefits of 175 million workers,” he said.

According to Forbes, the tax is supposed to target “overly generous” employer-provided health insurance plans, which will not only include executives but also those in unions.

Certain employees in well-paying unions are willing to have lower wages as a trade off for better benefits, reported Forbes, and the tax is projected to collect $80 billion by 2023 if it is approved.

“Middle-class families depend on employer health benefits, a crucial supplement to mom and dad’s salaries, to make ends meet,” said Republican Congressman Frank Guinta from New Hampshire, in the Alliance announcement.

“A 40 percent tax on their insurance plans would be devastating to Granite Staters' household finances, not to mention physical well-being,” said Guinta.

Democratic Congressman Joe Courtney of Connecticut said that in order to ensure that middle-class health benefits are protected, there has to be a permanent repeal of the Cadillac tax. “I look forward to continuing to work with my colleagues in Congress, the Administration, and those outside experts in the future to get this over the finish line,” he said.

There may be some benefits to the Cadillac tax, according to The Boston Globe, because some economists believe that “generous” insurance plans may lead employees to spend money on unnecessary care.

By imposing the tax, it would encourage employers to make health coverage less generous, which means that workers will have more costs in the form of deductibles and copays, reported The Boston Globe. This will force people to become more aware of their payments and skip unnecessary tests, and also drive stronger competition in the medical marketplace.

Business Affairs Homepage