The Independent Insurance Agents & Brokers of America (IIABA) threw its support behind legislation in the U.S. Senate and House of Representatives that would repeal the Affordable Care Act’s (ACA) “Cadillac tax.”
The “Cadillac tax,” which is set to go into effect in 2020, is a 40 percent excise tax on benefits that exceed an established annual cost – $10,800 a year for individuals and $29,100 a year for families. The bill to repeal the tax in the Senate, S. 58, is sponsored by U.S. Sens. Dean Heller (R-NV) and Martin Heinrich (D-NM). U.S. Reps. Mike Kelly (R-PA) and Joe Courtney (D-CT) are sponsoring H.R. 173 in the House.
“This harmful tax will not only hit many of our small business members and their clients starting in 2020, but over time will impact more and more individuals because the tax threshold is tied to a very slow measure of inflation,” said Charles Symington, senior vice president for external and government affairs at IIABA, also known as the Big “I.”
Symington said it would be counter to ACA’s stated goals, leading to a reduction in employer-sponsored coverage and higher costs for employees.
“The Big ‘I’ is grateful to Sen. Heller, Sen. Heinrich, Rep. Kelly and Rep. Courtney for introducing this critical legislation in the Senate and House,” said Wyatt Stewart, IIABA senior director of federal government affairs. “Enactment of this legislation is imperative to helping middle class employees across the country keep their current employer-sponsored health benefits.”