Delivering for Best-in-Class Wholesaler-Distributors
November 1, 2019

Following an unrelenting seven-year battle waged by Congressional Republicans to repeal/de-fund/delay/alter former President Obama’s signature domestic policy and legislative achievement, and the sweeping Republican victory in the 2016 elections, the GOP effort to repeal and replace the Affordable Care Act (“ACA” or “Obamacare”) fell dramatically short during the last Congress (although subsequent enactment of the Tax Cuts and Jobs Act includes repeal of the ACA’s individual mandate penalties).

Nonetheless, progress was made on delaying several ACA taxes on employers. For example:

  • Extension of the delay in implementation of the 40% excise tax on high-cost employer-sponsored health plans (the “Cadillac Tax”) until 2022.
  • Extension of the delay in implementation of the annual fee on health insurance providers (the “health insurance tax” or “HIT”) until 2020.
  • Extension of the delay in implementation of the medical device tax until 2020.

These bipartisan tax measures address revenue provisions of the Affordable Care Act (ACA) which are problematic to the over 181 million Americans enrolled in employment-based health coverage. Advocating for employer-sponsored coverage and protecting health care access for businesses of all sizes remains a top priority for NAW.

In July, the House overwhelmingly voted to fully repeal the Cadillac Tax. Last month, the National Coalition on Benefits, which NAW helps manage, spearheaded a letter to the Senate urging them to follow suit by the end of the year and eliminate this threat to working families’ health benefits.

Click here to read the letter urging full repeal of Cadillac Tax.

Legislation fully repealing and/or delaying the HIT Tax and the medical device tax have also been introduced in both the House and the Senate, yet no votes have taken place to date. We are hearing that Congress could move these ACA tax delays/repeals in an end of the year tax extenders bill or health extenders bill.

NAW will continue to urge all Members of Congress to protect our businesses by fully repealing these ACA taxes once and for all.

NAW serves on the Management and/or Steering Committees of several health care coalitions dealing with the broad spectrum of health care issues, including the Employer’s Health Care Clearinghouse, the National Coalition on Benefits, the Partnership for Employer Sponsored Coverage, and the Stop the HIT (Health Insurance Tax) Coalition.  These coalitions are actively engaged in advocating for employers of all sizes and the millions of hardworking Americans and their families who rely on employer-sponsored coverage every day.