Tags: cadillac | tax | obamacare | healthcare

Report: 'Cadillac Tax,' Medical Device Tax Likely to Be Repealed

a person carrying an obamacare sign
(AP)

By    |   Sunday, 15 December 2019 06:36 PM

Two taxes created by the Affordable Care Act will likely be repealed in year-end legislation, including the “Cadillac tax,” a 40 percent tax on the most generous employer-provided health insurance plans set to go into effect in 2022, according to sources who spoke with The Hill.

The Cadillac Tax was never implemented. A repeal for the levy was passed in the House in July. Forty-two senators have signed onto the companion bill following strong opposition from both employers and unions.

“This tax does not hit ‘overly-generous’ plans,” James A. Klein, president of the American Benefits Council, told the Hill.

The American Benefits Council is pushing to repeal the tax.

“It disproportionately affects health plans that are expensive because they cover large numbers of older workers, women, and families with chronic or catastrophic health conditions. Congress must act now!”

Lawmakers are also looking to repeal the medical device tax, a 2.3 percent excise tax on the price of taxable medical devices sold in the United States. The tax was originally imposed to help offset costs associated with the ACA, but the tariff could create a nearly $2 billion dollar hit to the medical industry, according to the Tax Foundation.

The tax has been suspended since 2016 and is set to go into effect next month unless Congress extends it or repeals it outright.

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Two taxes created by the Affordable Care Act will likely be repealed in year-end legislation, including the "Cadillac tax," a 40 percent tax on the most generous employer-provided health insurance plans set to go into effect in 2022, according to sources who spoke with The...
cadillac, tax, obamacare, healthcare
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2019-36-15
Sunday, 15 December 2019 06:36 PM
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