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:
http://www.pianet.com/news/press-releases/2015/piapraisescongressionalagreementtwoyeardelaycadillactax121615

Ted Besesparis

Senior Vice President, Communications

direct 703.518.1352 | tedbe@pianet.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."

 

Download
Created Date Wednesday, 16 December 2015 Modified Date Wednesday, 16 December 2015

Upcoming Events

April 2018
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 1 2 3 4 5

Featured Benefit

DocIT for Agents

 Agents are saving time quoting auto insurance, reducing MVR chargeback fees from carriers and other MVR costs, and making auto insurance sales more profitable for their agency by using DocIT for Agents. PIA members contact Drivers History at 856.673.1286 or pia@drivershistory.com

PIA of Minnesota
8646 Eagle Creek Circle, Suite 202
Savage, MN 55378

Phone: 866-694-7070
Fax: 866-749-8678

Email:Click Here to Email Us

 

 
piamn logo-web

Don't miss the latest news! Connect with us.

social facebook box blue 32social linkedin box blue 32social twitter box blue 32youtube