The $1.1 trillion budget deal that Congress approved Friday would delay the notoriously unpopular Cadillac tax for two years and put a repeal in reach of the congressional leaders and business groups who oppose it.
The House voted 316-113 Friday to approve the omnibus spending deal that congressional leaders unveiled earlier in the week. The Senate followed quickly with a 65-33 vote to approve the package and send it to President Barack Obama, who indicated he would not veto the measure.
Opponents of the 40% excise tax, which would be imposed on the portion of group health plan premiums that exceed $10,200 for single coverage and $27,500 for family coverage under the Patient Protection and Affordable Care Act, say the two-year delay is a major win for employers.
At Muneris Benefits, we view the Cadillac tax as being completely unreasonable and forces employers who have historically provided great benefits, to dramatically change their health insurance offerings.
Now we await the backlash to the employer responsibility payments that begin in January for employers who are not offering affordable health insurance or none at all. Stay tuned for more insight on the Affordable Care Act (ACA) and it’s many implications.