More than 1K Employers Urge Senate to Repeal the ‘Cadillac Tax’
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In a letter sent to Senate Majority Leader Mitch McConnell and Senate Minority Leader Charles Schumer, more than 1,000 organizations urged the Senate to fully repeal of the 40% “Cadillac Tax” on employer-provided health care coverage. The effort to repeal the tax has drawn bi-partisan support - the Senate bill has 63 bi-partisan co-sponsors and, earlier this year, the House passed a repeal bill 419 to 6.
The overwhelming employer support demonstrated by the 1,090 organizations that signed the letter is instrumental in keeping this topic at the forefront. And repealing the tax just got even more important. Earlier this week we learned of a bipartisan agreement to include arbitration language in legislation aimed at targeting surprise medical bills. As we’ve noted here, binding arbitration will cost an estimated $21 billion over 10 years to employers and private payers. This additional upwards pressure on health plan cost will be even more consequential if employers become subject to the Cadillac Tax – so fingers crossed that Cadillac Tax repeal language will be included in an end-of-year financial package. Just another reason it is important for lawmakers to hear from employers/plan sponsors who collectively provide healthcare benefits to over half of all Americans.
Thank you to everyone who signed the letter for rallying to support repeal. Let’s keep up the fight and get this done! Please send me a note if you want to know how you can become more involved in heath policy on behalf of employers.