U.S. Reps. Joe Courtney (D-Conn.), Donald Norcross (D-N.J.) and Dina Titu (D-Nev.) are unveiling legislation Tuesday to eliminate the Patient Protection and Affordable Care Act's "Cadillac tax," according to The Hill.
Scheduled to take effect in 2018, the "Cadillac tax" is a 40 percent excise tax on high-cost health plans some employers provide their workers. It is meant to reduce overall healthcare costs by encouraging employers to offer cost-effective health benefits. Under the PPACA, both fully insured and self-funding employer health plans will be subject to the tax.
The excise tax is receiving increasing criticism as its effective date draws nearer, with some complaining it discriminates against those in areas of the country where health costs tend to be higher. "The excise tax is an unnecessary change that would adversely impact beneficiaries in high-cost areas," said Rep. Courtney in a statement, according to The Hill.
Approximately one-third of employers will be hit by the excise tax in 2018 if they do nothing to change their plans, according to a recent survey by Mercer.
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