NRF not happy with proposed replacement to Affordable Care Act

The National Retail Federation has some big concerns about a plan unveiled Wednesday by House Republican leadership to replace President Obama’s Affordable Care Act.



“We see parts that we like, such as repealing the employer mandate and the ACA’s definition of 30 hours a week as full-time rather than 40, but other pieces need significant work,” said NRF VP for health care policy Neil Trautwein. “We are greatly concerned by the proposal to cap the employee exclusion from taxable income for employer-provided health benefits. For employees, this will amount to a tax on a portion of their benefits, thus reducing their total compensation.”



Given that employers are in no position to compensate with higher wages, Trautwein said, unhappy employees are a likely result.



“Any human resource manager can readily testify as to how sensitive employees are to the slightest change in benefits,” he said. “Policymakers should look elsewhere – medical providers, for example – to address rising health care costs.”



While retailers agree with the Republican’s vision of a competition-driven private health care market, employer-based health benefits are the source of coverage for 175 million Americans, and care must be taken to preserve this foundation, Trautwein noted.