A quartet of U.S. senators recently introduced legislation to repeal a so-called “Cadillac tax” on high-cost, employee-sponsored health care insurance under the Affordable Care Act (ACA), potentially saving companies millions of dollars.
Under the ACA, beginning in 2018, employers with health insurance plans costing more than $10,200 a year for individuals or $27,450 a year for families will be taxed at 40 percent of the cost above those limits.
U.S. Sens. Dan Sullivan (R-AK) and Lisa Murkowski (R-AK) joined Sens. Dean Heller (R-NV) and Martin Heinrich (D-NM) in introducing Middle Class Health Benefits Repeal Act of 2015 on Sept. 17, legislation that will fully repeal the tax.
Murkowski said she has opposed the ACA and its Cadillac Tax because they don’t make sense for Alaska’s small population and limited health care providers.
“Alaskans have already been feeling the pinch from rising health care costs, and this tax would place yet another financial burden on Alaskans that I’m just not willing to accept,” Murkowski said. “This mislabeled ‘Cadillac Tax’ will have drastic impacts in our state and across the country, and I’m happy to support legislation that would repeal it.”
Sullivan agrees, saying the Cadillac Tax would be “catastrophic for Alaskans,” hitting Alaska harder than other states.
“… This tax will … only place additional hardships on Alaskans by making health care more expensive and inaccessible,” Sullivan said. “Today, I am pleased to join a bipartisan group of senators to repeal this tax and look forward to working on patient-centered, market-based health care reforms.”