Tell Congress to Delay or Permanently Repeal the Cadillac/excise Tax!

In January 2017, Senators Dean Heller (R-NV) and Martin Heinrich (D-NM) introduced S. 58, and Representatives Mike Kelly (R-PA) and Joe Courtney (D-CT) introduced H.R. 173, legislation to repeal the ACA’s Cadillac/Excise Tax, which will impose a 40% excise tax on health plans that exceed certain cost thresholds beginning in 2020.

The Cadillac Tax calls for a 40% excise tax on the amount of the aggregate monthly premium of each primary insured individual that exceeds the year’s applicable dollar limit, which will be adjusted annually to the Consumer Price Index plus 1% initially and then CPI. Given that the pace of medical inflation is well beyond that of general inflation, the tax is destined to outgrow itself in short order and many employers will be impacted by the cost of the tax and the enormous compliance burden that the tax creates. Mercer estimated that a third of employers will be subjected to the tax when it’s set to kick in and that 60% of employers will be hit by 2022. Because of the projected wide reaching effect of the tax, many employers may be deterred from offering coverage.

Take Action today and tell your federal legislators to pass a repeal of the Cadillac/Excise Tax!

DISCLOSURE

The information provided herein is intended solely for the use of our clients. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher or Publishers of articles within.

The information provided is for informational purposes only and does not constitute legal advice. The information above contains only a summary of the applicable legal provisions and does not purport to cover every aspect of any particular law, regulation or requirement. Depending on the specific facts of any situation, there may be additional or different requirements. This is to be used only as a guide and not as a definitive description of your compliance obligations.