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House Moves Forward with Cadillac Tax Repeal

Cadillac tax repeal

1 minute read

The House of Representatives passed legislation on Wednesday to repeal the Cadillac tax. The Cadillac tax is part of the Affordable Care Act, a 40% excise tax on the excess cost of employer-sponsored health plans that exceed certain thresholds. The tax was put into place to help control health care spending and generate revenue for the marketplace plans.

Congress has already delayed the Cadillac tax’s implementation in 2015 and 2018. It was slated to go into effect in 2022. Lawmakers had concerns that the tax may cause employers to reduce their health benefits or make employees pay even more. There were also concerns that the tax may unfairly target those in poor health who have costly health plans or people who live in places where health costs are higher.

The Kaiser Family Foundation recently released an analysis of the so-called Cadillac tax, concluding that 21% of employers offering health benefit plans could be affected by the tax when it goes into effect in 2022 – and that will increase to 37% by 2030.1

Next, the bill will move on to the Senate. If passed, it will then go to the President to be signed into law.

Read the article for more details.

 

1 https://www.employeebenefitadviser.com/news/house-passes-cadillac-tax-repeal-measure

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Bill Enright

Bill Enright

Bill Enright, Director of Consulting Services for National Insurance Services, Inc. (NIS), coordinates and works with NIS’ Market Development Teams to enhance our full-service employee benefits capabilities. Bill’s expertise enables the NIS team to deliver customized, innovative employee benefits plans for schools, cities, towns, and counties. Bill is a 27+ year industry veteran with employee benefits expertise from insurance carrier to benefits consultant to Director of Consulting Services for NIS. He believes in bottom-line honesty while empowering NIS Consultants and customers with the knowledge they need to feel confident in their decisions. He has been published on the topic of healthcare reform and has served on advisory committees and insurance reform lobbying groups at the state and national level.