ASAE joined a diverse group of employers and other stakeholders in a letter this week urging Senate leaders to fully repeal the “Cadillac tax” on high-cost employer-provided health insurance that was supposed to help pay for the Affordable Care Act.
Delayed repeatedly by Congress, the tax would impose a 40 percent excise tax beginning in 2022 on employer-provided health plans that exceed $11,200 for an individual and $30,100 for a family. The goal of the tax initially was to keep health-care costs down and help pay for the ACA, but Democratic and Republican lawmakers now say that the tax would primarily hurt working families that have health coverage through their jobs.
The House passed a bill in July on a 419-6 vote to fully repeal the Cadillac tax, but the Senate has not taken it up.
More than 1,000 employers, trade groups, health care stakeholders, unions and disease groups signed the letter urging Congress to repeal the tax before the end of the year. To avoid the 40-percent tax hike coming in 2022, many employers are already altering their benefit packages.
“While this tax was intended to only hit Americans with ‘gold-plated’ plans, the reality is that very modest plans covering low- and moderate-income working families are projected to trigger the tax simply because they incur greater health expenses,” the letter said. “This tax has real and harmful consequences – Americans cannot afford to pay more for their health care.”