PIA Praises Congressional Budget Agreement with Two Year Delay of “Cadillac Tax” on Health Plans
FOR IMMEDIATE RELEASE CONTACT: Ted Besesparis
December 16, 2015 703-518-1352
PIA Praises Congressional Budget Agreement with
Two Year Delay of “Cadillac Tax” on Health Plans
WASHINGTON — An agreement for a two-year delay in the Affordable Care Act’s (ACA’s) “Cadillac Tax” was praised by the National Association of Professional Insurance Agents (PIA). Part of a budget agreement negotiated by congressional leaders, it delays implementation of the 40 percent excise tax until 2020.
“PIA is encouraged by the two-year delay in the implementation of the ‘Cadillac Tax’ that was negotiated as part of the budget agreement, however we will continue to push for outright repeal of this onerous tax on healthcare benefits,” said PIA National Vice President of Government Relations Jon Gentile.
“The 40 percent excise tax on what was incorrectly termed ‘overly generous’ health plans in reality would impact moderate-benefit plans that middle class Americans rely on, as well as the employer-sponsored health insurance market. We applaud this delay in the Cadillac Tax and view it as a prelude to its full repeal,” Gentile said.
As originally included in the Affordable Care Act (ACA), the Cadillac Tax would have imposed the 40% excise tax starting in 2018. This budget deal pushes implementation to 2020. The tax applies to fully insured and self-funded employer health plans, on amounts that exceed annual limits of $10,200 for individual coverage and $27,500 for family coverage. In addition to extending the start date two years, the budget agreement makes the excise tax deductible for businesses.
The effort to repeal the excise tax on health benefits has attracted broad, bipartisan support. In the House, more than 290 lawmakers supported legislation to repeal it. In the Senate, a repeal provision passed 90-10. A coalition of groups formed to oppose the tax, including the U.S. Chamber of Commerce, the National Federation of Independent Businesses (NFIB) and labor unions.
“The ‘Cadillac Tax’ remains a ticking bomb,” said PIA National Executive Vice President & CEO Mike Becker. “Initially, it was set to explode in 2018. Now, it has been re-set to go off in 2020. PIA will continue to work to disarm it completely, because it has the potential to create more market disruption than we’ve seen since the inception of the ACA.”
Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America SM. PIA’s web address is http://www.pianet.com
This press release online at:
Senior Vice President, Communications
direct 703.518.1352 | firstname.lastname@example.org
National Association of Professional Insurance Agents
400 N. Washington St., 2nd floor, Alexandria, VA 22314-2353
main 703.836.9340 | fax 703.836.1279 | www.pianet.com
PIA members are "Local Agents Serving Main Street America."SM
See why independent insurance agents across America are declaring, "I AM PIA."