The U.S. Senate passed the FY2017 budget resolution, which includes the first step toward repealing the Affordable Care Act by using the budget reconciliation process.
Earlier today, the U.S. Senate passed the FY2017 budget resolution, which includes the first step toward repealing the Affordable Care Act (ACA) by using the budget reconciliation process.
The budget resolution contains reconciliation instructions for Senate committees so that ACA repeal legislation can move through a fast-track process known as reconciliation, which requires only a simple majority to pass the Senate. These instructions are meant to facilitate quick action on repeal, as congressional Republicans are intent on sending repeal legislation to the President’s desk early this year.
The U.S. House of Representatives is expected to take up the same budget resolution, then send it to the White House soon after President-Elect Trump is sworn into office. The President-Elect and Republican leaders in Congress are still discussing how and when they will replace the ACA.
Meanwhile, the 115th Congress recently reintroduced two bills to repeal the “Cadillac” tax. Sens. Dean Heller (R-Nevada) and Martin Heinrich (D-New Mexico) are the lead sponsors of S. 58, and Reps. Mike Kelly (R-Pennsylvania) and Joe Courtney (D-Connecticut) are the lead sponsors of H.R. 173. Both pieces of legislation would fully repeal the “Cadillac” tax.
In 2015, Congress acknowledged the problems with the “Cadillac” tax and passed legislation to delay the tax until 2020. Now, starting in 2020, the ACA will impose a 40% tax on health benefits that exceed an established annual cost. That year, health plans exceeding $10,800 a year in value for individuals or $29,100 a year for families will be subject to this 40% tax. In the future, this tax will impact more individuals as health care costs rise faster than the measure of inflation tied to the tax.
The Alliance to Fight the 40 predicts that the “Cadillac” tax will lead to a reduction in employer-sponsored coverage and an increase in employee cost sharing—the opposite of the ACA’s stated goals. This will be harmful to middle-income Americans across the country. For these reasons, the Big “I” strongly supports legislation to repeal this tax and looks forward to working with Sen. Heller, Sen. Heinrich, Rep. Kelly, Rep. Courtney and the rest of Congress to ensure this tax never sees the light of day.
Wyatt Stewart is Big “I” senior director of federal government affairs.
