Wednesday, September 23, 2015

Bipartisan Senate Bill Would Eliminate the ACA’s “Cadillac Tax”

Dave Kyllo

Last week, Sens. Dean Heller (R-Nev.) and Martin Heinrich (D—N.M) introduced legislation that would repeal the Affordable Care Act’s (ACA) so-called “Cadillac Tax” which takes effect in 2018. The Cadillac Tax impacts any employer who offers a health insurance plan that costs more than $10, 200 annually for an individual or $27,450 annually for families. Employers will have to pay 40 percent tax of the cost above those limits under existing law starting in 2018.

In a press conference announcing the legislation, Sen. Heinrich said the Cadillac Tax is really more akin to a Ford Focus tax and would negatively impact women, seniors and those workers who live in more expensive geographic regions of the country. Rep. Joe Courtney (D—Conn.) is leading repeal efforts in the House. Repeal of the tax has broad support from large and small employers, labor unions and the insurance industry. The challenge for lawmakers will be making up billions in lost revenue if the tax is repealed.

Health care coverage is one of the largest expenses employers face. AHCA/NCAL members are encouraged to check out AHCA/NCAL Insurance Solutions before making a final decision about their 2016 employee plan coverage. This “Members Only” program is designed to give AHCA/NCAL members access to brokers who understand long term care and who truly know the ACA and its myriad requirements.

More importantly, AHCA/NCAL Insurance Solutions is designed to save members money. For more information, stop by Booth #712 at the AHCA/NCAL Annual Convention in San Antonio, or contact Dave Kyllo (202-898-6312) or Nick Cianci (202-898-2841) or email us at AHCA/NCAL Insurance Solutions.

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