Under the proposed replacement bill, which House Republicans unveiled March 6, the Cadillac tax would be kept but further delayed until 2025. Under the ACA, the tax was set to go into effect in 2020 following previous delays.
Keeping the tax is intended to prevent the proposed Republican healthcare bill from adding to the deficit after 10 years, a key factor for ensuring the measure will pass in the Senate with a simple majority, reports The Hill.
However, the provision is likely to face some opposition. For instance, Republican Sen. Orrin Hatch, Utah, chairman of the Senate Finance Committee, said that all taxes imposed under the ACA “need to go,” according to the report.
“My view is this: After spending seven years talking about the harm being caused by these taxes, it’s difficult to switch gears now and decide that they’re fine so long as they’re being used to pay for our healthcare bill,” said Sen. Hatch, according to the report.
Read the full article here.
More articles on finance:
5 steps to get your hospital’s MACRA strategy off and running
Republican ACA replacement plan would give tax break to super wealthy: 5 things to know
CBO downgrades federal cost projection for ACA insurance coverage provisions
