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Cadillac Tax Repeal Could Face Veto

As Congress wraps up its work in December, there is the possibility that a large healthcare legislative package that includes the repeal of the so-called Cadillac tax...
December 2, 2015

As Congress wraps up its work in December, there is the possibility that a large healthcare legislative package that includes the repeal of the so-called Cadillac tax, H.R. 3762, could pass the Senate.  The measure controversially includes a repeal of the employer and individual mandates of the Affordable Care Act (ACA), among other key provisions, and also includes the defunding of Planned Parenthood.

The U.S. House passed it in October and since then Senate leadership have struggled to find a way forward despite only needing 51 votes to pass it since the measure has been moved using reconciliation rules which means it can’t be filibustered.

What It Means to Agents: PIA strongly supports the repeal of the Cadillac Tax. Unfortunately, because this repeal was included among controversial measures into one large bill, even if it passes the Senate it will not be signed into law, as the White House has declared it will veto the measure.

The Cadillac Tax provision of the Affordable Care Act (ACA) would impose a 40% tax on so-called “overly generous” health plans starting in 2018. The tax applies to fully insured and self-funded employer health plans on amounts that exceed annual limits of $10,200 for individual coverage and $27,500 for family coverage. PIA opposes this tax because in actuality it will impact the vast majority of employer-based healthcare plans.

PIA National will continue to advocate for the repeal of the tax; we have endorsed a bill in the Senate (S. 2045) by Sens. Dean Heller (R-NV) and Martin Heinrich (D-NM), along with a companion bill in the House (H.R. 2050) by Rep. Joe Courtney (D-CT).

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