House Democrats Introduce Bill To Repeal ACA’s ‘Cadillac Tax’
On Tuesday, a group of House Democrats unveiled legislation to repeal the Affordable Care Act's "Cadillac tax" on high-cost health plans, The Hill reports (Ferris, The Hill, 4/27).
Under the ACA, most employer-sponsored health plans with annual premiums of more than $10,200 for individuals or $27,500 for families will pay a 40% excise tax on the portion of the premiums that exceeds those thresholds. The tax is set to take effect on Jan. 1, 2018.
IRS in February issued a notice seeking comments as it prepares to develop regulations for the tax, including providing flexibility for employers with a majority of employees who are engaged in "[h]igh-risk professions." Examples of such professions include construction workers, miners and other unionized occupations (California Healthline, 2/25).
House Dems Lead Push for Repeal
Democratic Reps. Joe Courtney (Conn.), Donald Norcross (N.J.) and Dina Titus (Nev.) unveiled the bill, which would eliminate the tax. The lawmakers have said they feel the tax unfairly targets individuals who live in more costly regions of the U.S., such as the Northeast and the West coast. Courtney's office wrote in a release announcing the Middle Class Health Benefits Tax Repeal Act that the "tax is an unnecessary change that would adversely impact beneficiaries in high-cost areas."
Republicans also have criticized the tax because it is based on general cost of living measures instead of growing health care costs.
However, other Democrats and President Obama have supported the tax, which they argue will only affect U.S. residents with the highest incomes (The Hill, 4/27).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.