SAHU Supports Bipartisan Budget Package to Delay ACA Healthcare Taxes
Sacramento, CA — The Sacramento Association of Health Underwriters (SAHU) applauds the House of Representatives for passing the Omnibus Appropriations bill that contains provisions that would delay the implementation of the Affordable Care Act’s “Cadillac tax” on high-cost health plans and the health insurance tax (HIT) levied on all private health insurance. The budget package will delay the implementation of the Cadillac tax for two years and creates a one-year delay on the HIT.
“This is great news,” says SAHU President, Marcy McCulloch, “if the Senate follows suit and President Obama signs into law, this will be a big win for employers considering all that they have to do currently to comply with ACA mandates. If implemented, the Cadillac tax and HIT will push healthcare costs even higher and hurt middle-class workers.”
“The Cadillac tax needs to be repealed or aggressively re-shaped if it is going to offer any real world solutions,” says Brad Davis, local insurance broker and SAHU board member, “as these taxes do very little to rein in healthcare costs. Hopefully Congress uses the delay to put some serious thought and consideration into how to make this work for Main Street America.”
The delay of the Cadillac/excise tax is effective for 2018 and 2019, meaning that without further legislative adjustment or repeal, the tax will now be scheduled to take effect beginning in January 2020. SAHU supports the delay of the Cadillac/excise tax as a short-term measure, but we remain fully committed to a complete repeal of the tax given its projected widespread impact on employer-provided insurance coverage.
The Sacramento Association of Health Underwriters (SAHU) is a local chapter of the California Association (CAHU) and the National Association (NAHU). Our vision is that every American will have access to personalized solutions for health, financial and retirement security using the services of local insurance professionals. SAHU’s mission is to improve our members’ ability to meet the health, financial and retirement security needs of all Americans through education, advocacy and professional development.