AHIP launches campaign to protect $231B employer health tax break

The colorful infographic starts with the message that "Over 180 million Americans rely on employer-provided coverage for affordable access to care, effective ways to improve health, and financial security."

The infographic ends with a section on "Protecting Employer-Provided Coverage."

"Some lawmakers have proposed changing the current tax treatment of employer-provided coverage," according to the infographic. "A strong majority of voters (63%) support the current tax treatment of employer-provided coverage. Most do not support taxing employee health benefits (only 28% support).

Related: Americans like the employer health benefits tax exclusion: Will it remain under Trump?

AHIP has emphasized the point that the current health benefits tax exclusion could include a separate illustration with the caption "63% support the current tax treatment of employer-provided coverage."

AHIP created the infographic program as part of its Coverage@Work campaign.

The campaign is aimed at policymakers and the general public. It "advocates for market-based solutions that advance health, choice, affordability, and value for every American."

What it means: Health insurers are not taking the current group health tax exclusion rules for granted.

The backdrop: The United States generated $5.1 trillion in on-budget and off-budget revenue in 2024 and spent $6.9 trillion, producing a deficit of $1.8 trillion. Federal budget analysts have estimated that the rules cost the government $231 billion in revenue. The health benefits tax exclusion is the most expensive item on the analysts' list of "income tax tax expenditures."

Health insurers and employers contend that the exclusion has been a low-cost way to encourage employers to provide high-quality coverage for most full-time, year-round workers and their families.