AHIP Supports Delay In Cadillac Tax On Employer-Provided Health Coverage

posted by AHIP

on September 11, 2018

On September 11, AHIP addressed a letter to House leaders, expressing support for legislation that proposes, among other steps, a one-year delay in implementation of the ACA’s tax on employer-provided health coverage.

Our letter emphasizes that the Cadillac tax, if implemented, will be harmful to the 180 million Americans who rely on employer-provided health coverage. We also caution that the impact of the Cadillac tax goes far beyond high-income workers and employee health plans offering “rich” benefits. To highlight this concern, we cite survey findings which estimate that 74 percent of employer-provided health plans will be affected by the tax when it takes effect in 2022 and that 82 percent will be subject to the tax within five years of its effective date.