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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 is Director of Consulting Services at National Insurance Services (NIS). He’s responsible for the management, fulfillment, and strategic direction of the full benefit consulting clients and services and the professional development of NIS full benefit consulting personnel. Bill is a 29+ year veteran in the employee benefits industry, from insurance carrier, benefit consultant, and now director. He has been published on the topics of health care reform and has served on the advisory committees and insurance lobbying groups at the state and local level. Bill served in the U.S Army Reserves as a non-commissioned officer for 11 years. He’s also involved with Special Olympics, youth sports coaching, and is a small group leader at his church.