The National Association of Professional Insurance Agents (PIA National) praised the overwhelming passage in the U.S. House of a bipartisan bill to repeal the provision of the Affordable Care Act (ACA) known to many as the “Cadillac Tax.”
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WASHINGTON, July 18, 2019 /PRNewswire/ -- The National Association of Professional Insurance Agents (PIA National) praised the overwhelming passage in the U.S. House of a bipartisan bill to repeal the provision of the Affordable Care Act (ACA) known to many as the "Cadillac Tax." The Middle-Class Health Benefits Tax Repeal Act (H.R. 748) was passed on July 17 by a vote of 419-6. The bill, sponsored by Reps. Joe Courtney (D-CT) and Mike Kelly (R-PA), would repeal the provision of the Affordable Care Act (ACA) that calls for a 40 percent excise tax on so-called "overly generous," employer-sponsored health plans. "Millions of Americans rely on employer-sponsored health care," said Jon Gentile, PIA National vice president of government relations. "PIA National thanks the House for repealing this tax that will, if it is implemented, negatively affect millions of people." Enacted as a part of the Affordable Care Act (ACA), the Cadillac Tax has never been implemented, due in large part to advocacy by PIA members who led successful efforts to delay it until 2022. The tax, which is assessed using the chained consumer price index (CPI), would apply to fully insured and self-funded employer health plans and will tax policies with limits that exceed the annual thresholds of $11,100 for individual coverage and $29,750 for family coverage. Because the Cadillac Tax is indexed to chained CPI, over time, more and more employer-sponsored health plans will be affected, because the benefit thresholds will increase at a rate slower than that of inflation. This will subject an increasing number of Americans to the Cadillac Tax sooner, because inflation will outpace increases in the thresholds using chained CPI. "PIA National has long sought to prevent this tax from ever being implemented, and we've successfully advocated for its delay twice," Gentile said. "Even though the tax will not take effect until 2022, its very existence creates instability in the health insurance market while putting consumers' health care at risk. We urge the Senate to follow the House and pass this bill to fully repeal the Cadillac Tax as soon as possible." 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 www.pianet.com. This press release is online at:
SOURCE National Association of Professional Insurance Agents |
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