Delivering for Best-in-Class Wholesaler-Distributors
July 6, 2020

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.

Through the multiple health care coalitions NAW helps manage, we have arranged and participated in well over 80 meetings on the Hill — this year alone — with key Committee and Member staff advocating for a full repeal of the Cadillac Tax, the Health Insurance Tax (HIT) and the medical device tax. For years, NAW has urged Congress to act and fully repeal these costly and burdensome Obamacare taxes and safeguard consumers from the exorbitant year-over-year increases to their coverage.

In December, Congress overwhelmingly voted to permanently repeal all three of these Obamacare taxes. This is a major victory for the 181 million Americans and their families who rely on employer-sponsored health coverage every day!

NAW is also working with our coalitions in support of legislation to provide employers with greater flexibility in their health benefit offerings by permitting wider use of HSAs. Finally, NAW is promoting legislation to revise employers’ reporting requirements under the ACA’s employer mandate, reduce the high costs of prescription drugs, and end the surprise medical billing crisis by enacting a local, market‐based benchmark solution rather than a government‐mandated binding arbitration process. Advocating for employer-sponsored coverage and protecting health care access for businesses of all sizes remains a top priority for NAW.

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.