U.S. Capitol. (Photo: Mike Scarcella/ALM)
Members of the House voted 419-6 today for H.R. 748, a bill thatcould repeal the Affordable Care Act (ACA) “Cadillac plan” excisetax.
|The implementation date of the ACA tax has been repeatedlypostponed. If implemented, the provision would impose a 40percent excise tax on what the government classifies as high-costemployer-sponsored health benefits packages.
|Supporters argue that the provision could help keep the federalhealth group health tax benefits exclusion from encouragingemployers to drive up the cost of healthcare, by offeringincreasingly generous health benefits packages without much thoughtabout the true cost of healthcare.
|Opponents say the provision could hurt the workers in grouphealth plans.
|In the past, efforts to repeal the Cadillac plan tax have runinto trouble when Congress has tried to search for othercost-cutting or revenue-raising measures to compensate for the lossof anticipated Cadillac plan tax revenue.
|The Joint Committee on Taxation has predicted that implementingthe tax could raise about $20 billion in tax revenue per year.
|H.R. 748 includes a provision that would permit Congress torepeal the Cadillac plan tax without compensating for the effectsof repeal on the federal budget deficit.
|Resources
The full H.R. 748 vote tally is available here.
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From: ThinkAdvisor
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Allison Bell
Allison Bell, ThinkAdvisor's insurance editor, previously was LifeHealthPro's health insurance editor. She has a bachelor's degree in economics from Washington University in St. Louis and a master's degree in journalism from the Medill School of Journalism at Northwestern University. She can be reached at [email protected] or on Twitter at @Think_Allison.
