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!
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.
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 http://docs.house.gov/billsthisweek/20180115/BILLS-115SAHR195-RCP115-55.pdf 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: http://www.ecfc.org/files/Ryan_Letter_1-17-18.pdf
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”).
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:
Now it’s the Senate’s turn to take a whack at repealing and replacing Obamacare.