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PIA Endorses Two Bills to Repeal ACA "Cadillac Tax"

PIA is engaged with efforts to repeal an excise tax on certain health plans, commonly referred to as the "Cadillac Tax..."
May 6, 2015

PIA is engaged with efforts to repeal an excise tax on certain health plans, commonly referred to as the "Cadillac Tax." The 40 percent excise tax on so-called "overly generous" employer plans—a provision in the Affordable Care Act (ACA)—is set to take effect in 2018. However, research has shown the Cadillac Tax will have a much broader effect than Congress intended. Furthermore, the tax is likely to have a disparate impact on certain groups. PIA has endorsed two similar pieces of legislation: H.R. 879, introduced by Congressman Frank Guinta (R-NH), and H.R. 2050, introduced by Rep. Joe Courtney (D-CT). PIA is proud to support measures to eliminate the excise tax on employer-sponsored health plans and while these two bills have minor differences between them, we support both and their intent to repeal the excise tax.

In addition, PIA submitted comments to the Internal Revenue Service (IRS) on May 4 seeking guidance on how the tax will be calculated and offering suggestions to help stem unintended consequences of the law.

What It Means to Agents: PIA opposes the Cadillac Tax because it will negatively impact the employer-sponsored health insurance market that millions of middle class Americans rely on. It will impact not just high-benefit plans, but moderate-benefit plans and it could have a disparate impact on the age, gender, family-size and geographic location of an employer's workforce.

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