The ERISA Industry Committee (ERIC) has announced its support the advancement of reconciliation measures collectively referred to as the American Health Care Act (AHCA), and urges the Senate to include full and permanent repeal of the 40 percent Cadillac excise tax on employer-sponsored health benefits.
ERIC believes the AHCA includes a number of provisions that will enhance the ability of employers to offer benefits, reduce taxes that are passed on to health care purchasers and consumers, and prevent cost-shifting by stabilizing the individual markets. The legislation includes:
• repeal of the employer mandate, paving the way for Administrative action to eliminate the reporting requirements under ACA Secs. 6055 and 6056;
• repeal of numerous taxes, such as the taxes on pharmaceuticals, over-the-counter medicines, and limitations on flexible spending accounts (FSAs);
• expansion of and improvements to health savings accounts (HSAs), such as increasing the annual HSA contribution limit to match the annual maximum out-of-pocket cost;
• targeted funding and new flexibility for insurance rules in order to stabilize the individual markets; and
• further delaying the Cadillac tax, with indications from staff that the intention is to fully repeal the tax when the legislation is considered on the Senate floor.
Visit our News Library to read more news stories.