Share This Article:
    

House votes to repeal Cadillac Tax

iStock-919376998

Excise tax on high-cost health plans has never taken effect

The U.S. House of Representatives voted last week to repeal the Cadillac Tax, the Affordable Care Act’s 40 percent excise tax on high-cost group health plans.

The tax has never taken effect – its implementation has been consistently extended by Congress. The tax is currently scheduled to begin in 2022 and would tax health benefits exceeding $11,200 for an individual and $31,100 for a family at 40 percent.

The Senate currently has a similar bill, but it’s unclear as of now whether they will vote on it. 

Proponents of the Cadillac Tax argue that because health benefits aren’t subject to taxes, employers are incentivized to spend more money on generous benefits, which drives up healthcare costs. However, the Cadillac Tax has been criticized by employer groups and insurers as hurting workers and small businesses.

Want to provide cutting-edge benefits and HR advice to clients and prospects? Click below to schedule a demo of BerniePortal.

New Call-to-action

Share This Article:
    

Related Posts

Check out this column in BenefitsPro: Traditionally, small groups in the less-than-50...

The value of an all-in-one HR solution BerniePortal founder Alex Tolbert was recently...

Dynamic Duo: Korthase Flinn Insurance & Financial Services + Lauren Massingille ...

Questions to ask Have you encountered prospects that are currently working with a PEO?...

Submit a Comment