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“Cadillac Tax” Delay May Be Included in CR

On Jan. 16, the U.S. House Appropriations Committee released a draft bill to extend funding for the federal government until February 16. As part of this spending package, or continuing resolution, the draft bill includes a delay of the so-called “Cadillac Tax” on employer-provided health insurance of two years...
January 17, 2018

On Jan. 16, the U.S. House Appropriations Committee released a draft bill to extend funding for the federal government until February 16. As part of this spending package, or continuing resolution (CR), the draft bill includes a delay of the so-called “Cadillac Tax” on employer-provided health insurance of two years. The tax, part of the Affordable Care Act, has never taken effect and is currently set to be implemented in 2020 after PIA, along with other stakeholders, successfully delayed the tax from its original start date of 2018. With the tax set to take effect in less than two years, PIA has been advocating for either a further delay or the complete repeal of the tax. The CR released Tuesday night would include a two-year delay of the tax until 2022.

“Even Democrats who put that awful tax in place believe it needs to be delayed. If we can find some common ground there that would be terrific,” U.S. House Ways and Means Committee Chairman Kevin Brady (R-Texas) said.

The Cadillac tax would apply a 40 percent excise tax to fully insured and self-funded employer health plans and would be levied on premium amounts higher than estimated thresholds of $10,800 for individual coverage and $29,100 for family coverage.

PIA is continuing to actively advocate for a delay in the implementation of the so-called “Cadillac Tax” and also supports bipartisan legislation to fully repeal the tax.

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