Delivering for Best-in-Class Wholesaler-Distributors
March 8, 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 115th 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.

This February, the Partnership for Employer-Sponsored Coverage Coalition, which NAW helps manage, spearheaded two letters to both the House and Senate supporting the bipartisan Middle Class Health Benefits Tax Repeal Act (H.R. 748), introduced in the U.S. House of Representatives to repeal the 40 percent excise tax on employer-sponsored coverage, known as the Cadillac Tax, and the Senate-introduced Jobs and Premium Protection Act (S. 80), to repeal the Health Insurance Tax (HIT). We continue to urge all Members of Congress to protect our businesses by fully repealing the Health Insurance Tax (HIT) and the Cadillac Tax once and for all.

Click here to read the letter of endorsement for H.R. 748, and click here to read the letter of endorsement for S. 80.

Two additional NAW-supported health bills passed the House last Congress: the Small Business Health Fairness Act authorizes the formation and multi-state operation of both self-funded and fully-insured association health plans (“AHP”); and the Self-Insurance Protection Act (“SIPA”) shielding stop-loss insurance from being regulated as health insurance. SIPA’s enactment would reaffirm long-standing policies to ensure employers can continue to offer workers flexible, more affordable health care plans through self-insurance.

These two bills have not yet been reintroduced in the 116th Congress.

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