• Cadillac Tax Update!

    Employers Council on Flexible Compensation

    Next week the House will vote on HR 748, the Middle Class Health Benefits Tax Repeal Act of 2019, the bill to fully repeal the 40% “Cadillac Tax” on employer-provided health care coverage, led by Reps Joe Courtney (D-CT) and Mike Kelly (R-PA). This legislation has 359+ cosponsors and strong bipartisan support. Let your member of Congress know that they should vote Yes!

  • Bill Ending Government Shutdown Also Delays Cadillac Tax for 2 Years

    Employers Council on Flexible Compensation

    Last evening, President Trump signed a bill which would fund the government for another three weeks, thereby ending the three-day shutdown of the government.  The bill text is here.  Included in section 4002 of the bill is a provision which would delay the effective date of the excise tax on high-cost employer-sponsored health plans (the "Cadillac Tax") for two additional years, until 2022.  ECFC has been lobbying for repeal of the Cadillac Tax since its enactment as part of the Affordable Care Act and for the delay of the implementation of the tax until full repeal can be enacted.  This extension of the effective date of the implementation of the tax is good news for ECFC and its membership.

  • Two-Year Delay for Cadillac Tax Included in CR Bill to Keep the Government Running

    Employers Council on Flexible Compensation

    Republican leadership in the House of Representatives have released a proposed legislation to provide short-term funding of the government until February 16, 2018, thereby avoiding a government shutdown this Friday.  The bill text and an explanation of the bill’s provisions is contained here  As part of this bill, the effective date of the excise tax on high-cost health plans (the “Cadillac Tax”) would be delayed for an additional two years, so that the tax will not become effective until 2022 rather than 2020.  The bill also addresses other tax provisions that were part of the Affordable Care Act, such as the medical device excise tax and the excise tax on health insurers.   In addition, the bill would extend the Children’s Health Insurance Program (CHIP) for six additional years.
    Congress will need to address the funding of the government by Friday to avoid a government shutdown.  The short-term funding legislation proposed by House Republican leadership will need to be voted on before then and we may see changes to this proposal to help garner support for the bill.   The Senate must also agree to a short-term funding legislation, but there are reports that Senate Democrats may filibuster the bill if it does not address immigration matters such as an extension of the Deferred Action on Childhood Arrivals (DACA) program that President Trump has suspended.  Consequently, it is unclear as to whether the short-term funding legislation proposed by House leadership will be enacted thereby averting a government shut-down.
    ECFC has sent a letter to the Speaker of the House, Paul Ryan, thanking him for the inclusion of the Cadillac Tax delay in the short-term funding legislation and expressing our support for the bill. ECFC members should contact their legislators in Congress to ask them to support this legislation which will delay the effective date of the Cadillac Tax.

    Letter to Speaker Ryan:

  • House Ways and Means Committee Members Introduce Bills to Delay the Cadillac Tax and Deal with other ACA-related Taxes

    Employers Council on Flexible Compensation

    Today, the Ways and Means Committee Republicans announced the introduction of a number of bills dealing with taxes imposed by the Affordable Care Act.  (See the press release here.)  Of particular interest to ECFC members is a bill providing for a one-year delay the excise tax on high-cost health plans (the “Cadillac Tax”).

  • ECFC Joins with 36 Groups to Ask Congress for Cadillac Tax Relief

    Employers Council on Flexible Compensation

    Today, ECFC signed onto a letter with 36 other prominent trade groups to request that Congress grant relief from the impending 40 percent “Cadillac” tax on employer-sponsored health coverage before the end of this year. 

    The letter stresses the importance of quick action by pointing out the following:

  • 8 Key Tax Changes in the Senate Healthcare Bill

    Accounting Web

    Now it’s the Senate’s turn to take a whack at repealing and replacing Obamacare.

  • Chamber of Commerce urges repeal of 'Cadillac tax' on high-cost employer health plans

    The Hill

    The U.S. Chamber of Commerce urged Senate Republicans to repeal ObamaCare's "Cadillac Tax" on high-cost employer insurance plans in its healthcare replacement bill. 

    The tax isn't slated to go into effect until 2020, and the current Senate draft would further delay its implementation until 2026 to comply with the chamber's budget rules. 

    But the Chamber of Commerce and 28 other professional organizations want the Senate to scrap the tax permanently. 

    Read full article here

  • Views Replacing ACA? Hard. Keeping HSAs? No Problem.

    Employee Benefit Adviser

    It is doubtful that there is a Republican in Congress who doesn’t support health savings accounts. HSAs were enacted as part of the Medicare Modernization Act of 2003, which extended drug coverage under Medicare. For many conservative Republicans, the HSA provisions were the only reason that they voted for a law they thought was expanding government spending in healthcare. Since then, Republicans have been tinkering with the law to increase the number of people covered by HSAs.

    We now have a new bill to repeal the ACA, the American Health Care Act that passed in the House of Representatives on May 4, 2017. This new bill contains a number of provisions that are helpful to people who participate in HSA programs.

    Read full piece here.

  • Senate bill would repeal most ObamaCare taxes, delay Cadillac tax

    The Hill

    The Senate draft healthcare bill unveiled Thursday takes a similar approach to ObamaCare's taxes as the House bill — repealing most of them with the exception of the Cadillac tax.

    The Cadillac tax, which applies to high-cost health insurance plans, would be delayed until 2026 in both the Senate and House bills. The tax is unpopular with both Republicans and Democrats and has never taken effect. However, the tax has been estimated to raise a significant amount of revenue that could help pay for other provisions in the bills.

    Read full article here

  • GOP considers keeping ObamaCare taxes

    The Hill

    Senators are seriously considering keeping in place some ObamaCare taxes for longer than the House-passed bill would as they seek to draft healthcare legislation that can pass their chamber with a simple majority.

    Republicans are looking to slowly phase out extra federal funds for Medicaid expansion, beef up the new tax credits for buying insurance and add money for opioid abuse treatment — but they’ll have to pay for it to ensure the bill passes muster.

    Read full article here


“My Money, My Health” is supported by the Employers Council on Flexible Compensation (ECFC), the leading nonprofit organization promoting choice in benefit solutions. For more information, please visit