WASHINGTON, D.C., July 17, 2019—The Independent Insurance Agents & Brokers of America (the Big “I") today applauds the U.S. House of Representatives for passing legislation which would repeal the Affordable Care Act's (ACA) 40% excise tax or “Cadillac" tax. Reps. Joe Courtney (D-Connecticut) and Mike Kelly (R-Pennsylvania) are the lead sponsors of H.R. 748, the Middle Class Health Benefits Tax Repeal Act.
“As the country's oldest and largest national association of independent insurance agents, the Big 'I' is greatly concerned about the impact of the ACA's 40% excise tax," says Charles Symington, Big “I" senior vice president of external, industry & government affairs. “This harmful tax will not only hit many of our small business members and their clients starting in 2022, but over time will affect more and more individuals because the tax threshold is tied to a very slow measure of inflation. This snowball effect will do irreparable damage to the employee benefits marketplace. The Big 'I' fully supports repealing this destructive tax and thanks Reps. Joe Courtney (D-Connecticut) and Mike Kelly (R-Pennsylvania) for their hard work to ensure this tax never sees the light of day."
Congress has repeatedly acknowledged problems with the “Cadillac" tax and most recently delayed the tax until 2022. Starting in 2022, the ACA will impose a 40% tax on health benefits that exceed an established annual cost. The Alliance to Fight the 40 predicts that the tax will lead to a reduction in employer-sponsored coverage and an increase in employee cost sharing— the exact opposite of the ACA's stated goals. This will be harmful to middle-income Americans across the country. For these reasons, the Big “I" strongly supports legislation to repeal this tax.
“It is imperative that Congress protect the employer-sponsored healthcare system for the 181 million Americans who depend on it," says Wyatt Stewart, Big “I" senior director of federal government affairs. “Given the overwhelmingly bipartisan support in the House of Representatives, the Big 'I' strongly urges the U.S. Senate to pass this legislation as soon as possible."
Founded in 1896, the Independent Insurance Agents & Brokers of America (the Big “I") is the nation's oldest and largest national association of independent insurance agents and brokers, representing more than 25,000 agency locations united under the Trusted Choice brand. Trusted Choice independent agents offer consumers all types of insurance—property, casualty, life, health, employee benefit plans and retirement products—from a variety of insurance companies.