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PIA Praises Two-Year Delay of Cadillac Tax

A two-year delay of the Affordable Care Act’s “Cadillac Tax” was praised by PIA...
December 23, 2015

A two-year delay of the Affordable Care Act’s (ACA’s) “Cadillac Tax” was praised by PIA. Part of an appropriations agreement negotiated by congressional leaders, it was passed December 18 as part of a massive “omnibus” funding measure. The Cadillac Tax provision delays implementation of the 40 percent excise tax until 2020.

“PIA is encouraged by the two-year delay in the implementation of the ‘Cadillac Tax’, however we will continue to push for outright repeal of this onerous tax on healthcare benefits,” said PIA National Vice President of Government Relations Jon Gentile.

As originally included in the Affordable Care Act (ACA), the Cadillac Tax would have imposed the 40% excise tax starting in 2018. This budget deal pushes implementation to 2020. 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. In addition to extending the start date two years, the budget agreement makes the excise tax deductible for businesses.

“The ‘Cadillac Tax’ remains a ticking bomb,” said PIA National Executive Vice President & CEO Mike Becker. “Initially, it was set to explode in 2018. Now, it has been re-set to go off in 2020. PIA will continue to work to disarm it completely, because it has the potential to create more market disruption than we’ve seen since the inception of the ACA.”

Omnibus Bill Would Delay Cadillac Tax (Best’s News Service 12/16)

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