Criticism from all sides of the political aisle from liberal to conservative to independent have been heaped upon the Affordable Care Act. The attacks range from hatred of the individual mandate, that requirement that everyone have insurance, to the expensive state insurance exchanges to thoughts that the Affordable Care Act is unaffordable to the poor who cannot afford co-payments in spite of now having insurance.
You get the picture.
On the higher income scale of things lies the Cadillac tax. It forces employers to pay a 40% tax on plans that cost more than $27,500 per year per family or $10,200 for an individual. That plan — as you know — would be incredibly comprehensive.
Or would it?
To give companies a chance to figure things out, Congress set the Cadillac tax to go into effect in 2018. In 2015 the public and private sector have figured it out and they’re screaming mad. The strong reaction stretches from Democrats to Republicans and from liberals to conservatives. The reason — says Jim Klein of the American Benefits Council — is because it’s going to hit middle income America just as hard as those at the higher end of things.
Klein’s coalition — consisting of public and private employers, unions and other organizations — wants the tax repealed. So do many members of Congress. House members Rep. Frank Guinta — a New Hampshire Republican — and Rep. Joe Courtney — a Democrat from Connecticut — have introduced a bill to do away with the Cadillac tax.
And they insist it stand alone and not be tied to anything else.
Source link: Employee Benefit Advisor