Dive Brief:
- Congress voted to delay the controversial "Cadillac tax" on employer-sponsored health plans as part of a bill to avoid a government shutdown on Feb. 8. The tax is an Affordable Care Act (ACA) measure that taxes health plans worth more than $27,500 for family coverage and $10,200 for individuals.
- The vote pushes back the tax until 2022, bringing temporary relief to employers nationwide, who have been keeping a close eye on the tax since its introduction as a means to fund the ACA.
- Brian Marcotte, president and CEO of the National Business Group on Health (NBGH), called the bipartisan vote a win-win for both employers and employees. "We very much appreciate Congress’ action to delay the excise tax on employer-provided health benefits," he said in an emailed statement to HR Dive, adding that they "look forward to continuing to work with Congress to permanently repeal this flawed tax on a valued source of stable, affordable health coverage and innovative approaches to health care delivery."
Dive Insight:
The "Cadillac Tax" was one ACA measure that both Democratic and Republican lawmakers opposed. It has been described by business and healthcare groups as burdensome, time-consuming and administratively costly.
By delaying the tax by four more years (after being delayed to 2020 once before), lawmakers have given themselves time to consider the tax and its implications. Although Republicans remain intent on repealing the ACA, several attempts at the Congressional level have been unsuccessful.
