Tuesday, January 5, 2016

Congress Postpones the ACA’s “Cadillac Tax” Until 2020

Dave Kyllo

At the close of the first session of the 114th Congress, lawmakers approved a massive spending and tax package that included a postponement of the Affordable Care Act’s so-called “Cadillac Tax” until 2020. The tax was scheduled to take 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. The Kaiser Family Foundation estimates that one in four employers offer at least one health plan that would be subject to the tax.

Postponement of the unpopular tax had broad bipartisan support and the tax is strongly opposed by organized labor. Policy insiders are speculating that the postponement signals a strong likelihood for permanent repeal in the next Administration. The Congressional Budget Office estimates that the tax would raise about $87 billion over 10 years to help defer other ACA costs.

Employee health insurance is costly and AHCA/NCAL members are encouraged to take a look at AHCA/NCAL Insurance Solutions before making a final decision about their employee plan coverage. This “Members Only” program is designed to give AHCA/NCAL members access to brokers who understand long term care and who will work to save AHCA/NCAL members money. For more information, contact Dave Kyllo (202-898-6312) or Nick Cianci (202-898-2841) or email us at AHCA/NCAL Insurance Solutions.

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