NAHU is urging Congress to further delay the Cadillac/Excise Tax as they consider additional delays of the Health Insurance Tax (HIT) and the Medical Device Tax. All three of these ACA taxes were delayed in December 2015, with the Cadillac Tax delayed until 2020 and the HIT and medical device delayed for one year each. As you know, employers have already begun planning for these taxes as if they will take effect, and Americans are seeing drastic cuts to their health insurance benefits as a result. While NAHU continues to advocate a permanent repeal of these taxes, we urge Congress to pass a short-term delay as it determines the long-term decisions on these taxes.
The Cadillac Tax calls for a 40% excise tax on the amount of the aggregate monthly premium of each primary insured individual that exceeds the year’s applicable dollar limit, which will be adjusted annually to the Consumer Price Index plus one percent. Given that pace of healthcare growth, beyond that of general inflation, this means that the tax is destined to outgrow itself in short order and many employers will be impacted by the cost of the tax. Many employers are attempting to find ways to avoid having to pay the tax, including offering less generous coverage (part of the intent of the tax), but also shifting the burden onto the employees/consumers of care through higher co-pays and co-insurance or by making employees pay a greater portion of the premium.
NAHU is calling on Congress to again delay this tax to provide immediate relief for Americans who receive employer-sponsored insurance. You can help us spread the message by taking action:
- Contact your representative and senators. Send an Operation Shout today asking your federal legislators to delay the Cadillac Tax. You can also call your senators at the numbers below.
- Tell your employer clients to take action. Your employer clients that will be directly impacted by the tax can send the most direct message of why this delay is needed before the end of the year as they plan for the tax to take effect. Tell them to take action here.
- Share your story. As a licensed insurance specialist who works closely with employers to help them understand and comply with the law’s requirements, stories from your clients about how they will be impacted by the tax, such as through decreased access to coverage, increased cost-sharing and out-of-pockets costs, and added administrative burdens for compliance, will demonstrate the widespread need for this delay and eventual repeal. We will share your stories with appropriate legislators and staff. You can share your story here.
Take action today and tell your federal legislators to pass a delay of the Cadillac/Excise Tax before the end of the year!
Don’t want to send an email? No problem, you can also reach your senators by phone:
Rep. Billy Long (R) can be reached at (202) 225-6536.
Sen. Claire McCaskill (D) can be reached at (202) 224-6154.
Sen. Roy Blunt (R) can be reached at (202) 224-5721.