For the Win
On Monday, House Republicans released the latest version of the repeal and replace legislation. The proposed legislation does not include the cap on the tax exclusion for workers in employer-sponsored plans, which would have meant a payroll tax hike for tens of millions of Americans. We consider this a major victory…
This latest version of the repeal and replace legislation is being marked up in both the House Ways & Means and Energy & Commerce Committees at this very moment and could be voted on by the full House of Representatives as early as next week. This, of course, comes amid an uproar from some Republicans who want to expand the bill and others who dramatically want to scale it back.
In the meantime, we will redouble our efforts to persuade legislators on both sides of the Capitol to not undermine employer-based health plans, which serve more than 170 million Americans. “Do no harm” to employer plans remains our mantra.
Cadillac Tax Looms
The challenge to repeal the Cadillac Tax, however, continues. If the proposed legislation is passed as-is, the Cadillac Tax would be delayed to 2025. But delay is not enough. Workers will continue to lose benefits and face higher costs as long as the tax remains in law. We want full repeal.
The current Cadillac Tax threshold is $10,200 for an individual plan and $27,500 for families. Most predictions indicate that a significant number of group health plans would trigger the 40 percent excise tax by 2025 if there aren’t any adjustments made to the threshold.
There is promising news:
Stay tuned for a deeper analysis and more information as the situation evolves. In the meantime, please contact Joel Wood at firstname.lastname@example.org or Joel Kopperud at email@example.com with any questions.
Joel Kopperud, Vice President of Government Affairs:
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