Trade association joins growing movement to repeal the ‘Cadillac’ tax

The National Association of Professional Insurance Agents (PIA) has officially joined the growing movement of trade associations, employers and legislators that would like to repeal the Patient Protection and Affordable Care Act’s (ACA) excise tax on high-cost health plans.

Cadillac tax. The excise tax, otherwise known as the “Cadillac” tax will impose a 40 percent tax on health plans that are valued for more than $10,200 for individual coverage or $27,500 for family coverage. The Cadillac tax was intended to help fund the ACA, but some experts believe that it will drive up both employers’ and employees’ health care costs.

PIA. The PIA recently endorsed two bills in Congress that would repeal the Cadillac tax. The two bills are: “Ax the Tax on Middle Class Americans’ Health Plans Act” (H.R. 879), introduced by Frank Guinta (R-NH), and H.R. 2050, a bill to repeal the excise tax introduced by Rep. Joe Courtney (D-CT).

“The ‘Cadillac Tax’ is a ticking bomb that is set to explode in 2018 and deny health coverage to millions of middle-class Americans,” said PIA National Executive Vice President and CEO Mike Becker. “It has the potential to create more market disruption than we’ve seen since the inception of the ACA, all to benefit government programs.”

According to PIA National Director of Federal Affairs Jon Gentile, “PIA strongly supports repeal of the ‘Cadillac Tax’ because it will impact not just high-benefit plans, but moderate-benefit plans, and it could have an unequal impact based on the age, gender, family-size and geographic location of an employer’s workforce.”

For more information, visit http://www.pianet.com.

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