Focus HR, Inc. is closely following legal maneuvers, in the courts and in Congress, that could dismantle the Obama Administration’s Affordable Care Act, bit by bit.
A bi-partisan vote (419-6) in the Democratic-led U.S. House of Representatives sends an overwhelming message to employers across the United States that the so-called “Cadillac” tax may never take effect.
“The tax is a 40% levy on health insurance above certain thresholds -about $11,200 for individuals and $30,100 for families- starting in 2022. It counters the tax law that says employees must pay individual income taxes on wages but not on the value of their health policies. ”
Source: Wall Street Journal
Republicans are opposed to the Affordable Care Act in general, but Democrats worry that the “Cadillac” tax will cheapen the quality of health care offered to our nation’s work force.
It’s estimated “1 in 5 employers offering health insurance would have at least one insurance plan subject to the tax in 2022, and the share would grow quickly over time.”
Source: CBSNews.com
The Trump Administration has already dismantled the penalty for people who choose to skip health care all together.
“Right now, employers are able to provide the best plan for their employees because they aren’t dealing with a penalty like the Cadillac tax,” said Sandy Garcia, Focus HR’s Benefits Account Executive. “This vote is a move in the right direction. The government shouldn’t be able to influence what health care plans our clients offer to their employees.”
To speak with Focus HR’s Employee Benefits team about the plans offered through your business click here.
