By Carol Potaczek
Ways and Means Republican members unveiled H.R. 4616 on December 12, 2017, which provides relief from the Patient Protection and Affordable Care Act’s (ACA) (P.L. 111-148) employer "pay or play" requirement for 2015 through 2018 and delays the 40 percent excise tax on high-cost employer-sponsored coverage, or "Cadillac Tax," for one additional year. The bill was introduced by Representatives Mike Kelly (R-PA) and Devin Nunes (R-CA).
The American Benefits Council, a national trade association for companies concerned about federal legislation and regulations on employee benefits, applauded the legislation and called the one-year delay on the Cadillac Tax "a helpful step for plan sponsors." According to American Benefits Council President James A. Klein, the organization is looking forward to a full repeal of the Cadillac Tax, along with the ACA’s employer mandate.
Klein stated that, "As we noted in our December 8 letter to Congress, if tax reform legislation repeals ACA’s individual mandate penalties—as it seems poised to do—it is essential that it also provide relief from the employer mandate penalties. Employers are already receiving enforcement notices from the IRS, requiring employers to review complex reporting and respond within extremely short deadlines, making relief an urgent necessity. Employers and workers need certainty. The only way to achieve that is permanent repeal of this onerous and inequitable tax on middle-class families."
"We know Congress faces many challenges and a long to-do list," Klein continued. "But at a time of great instability in the individual insurance market, it is crucial that lawmakers protect the employer-sponsored system covering more than 178 million Americans. We look forward to working with representatives Kelly, Nunes and Brady toward that goal."
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