More than two years away from the implementation of the Affordable Care Act’s “Cadillac” tax, 16 percent of large employers offering health benefits have changed their benefit plans or moved to less expensive plans to avoid going over the limits set by the law, according to a Kaiser Family Foundation report released Tuesday.
The key findings from the survey, conducted from January through June 2015, include a modest increase (4%) in the average premiums for both single and family coverage in the past year. The average annual single coverage premium is $6,251 and the average family coverage premium is $17,545.
Some Republicans are eyeing repeal of Obamacare’s “Cadillac tax” as part of a larger plan to roll back some of the law’s most unpopular and unworkable provisions. It is certainly a good idea to move legislation this year that begins to push back against Obamacare’s many excesses. But the Cadillac tax is the last provision Republicans should be targeting for repeal right now, and they certainly shouldn’t repeal it without replacing it with something more sensible.
The Census Bureau has finally released definitive statistics on the number of uninsured in 2014 and the news is not good for Obamacare (unless, of course, you have abysmally low expectations for government performance). The population-wide uninsured rate fell from 14.5% in calendar year 2013 to 11.7% in 2014. The total number of uninsured dropped from 45.2 million in 2013 to 36.7 million in 2014–a net of 8.5 million who gained coverage.
CBO and JCT have completed a preliminary estimate of the net budgetary effect of eliminating the requirement that individuals purchase health insurance and associated penalties established by the Affordable Care Act. We estimate that eliminating that requirement and the associated penalties would reduce the deficit by about $305 billion over the 2015-2025 period. That total consists of a $311 billion decrease in direct spending partially offset by a $6 billion decrease in revenues. Please see the attached table for year-by-year budgetary effects and a summary of the effects on health insurance coverage.
Repealing ObamaCare’s individual mandate would save about $300 billion over the next decade while driving the nation’s uninsured rate back up to 2013 levels, according to new federal budget estimates.
Government health departments would save about $311 billion over 10 years if Republicans successfully repealed the mandate, which requires nearly all adults to purchase healthcare or pay a penalty.
Our country’s small and mid-sized businesses owners and their employees make our economy run. We are both former small business owners, and we understand both the long hours and financial pressures facing entrepreneurs looking to get their business off the ground, as well as their commitment to providing a positive working environment for their employees. The Americans powering our small businesses are our family, our friends and our neighbors, and they deserve common-sense solutions to the challenges they face.
Unsurprisingly there are more problems with the Affordable Care Act (Obamacare) that await members of Congress coming back from their August recess.
Topping the list of issues is a provision in Obamacare that changes the definition of “small employer” from “50 or fewer employees” to “100 or fewer employees,” starting January 1, 2016.
Ike Brannon is offering a full-throated defense of the Cadillac tax over at The Weekly Standard. He fully concedes that Obamacare is “replete with bad policies.” But he would have us believe “the so-called Cadillac tax is not one of them.”
Section 9001 of the Affordable Care Act (ACA), set to take effect in 2018, imposes what it calls an “Excise Tax on High Cost Employer-Sponsored Health Coverage”, which has come to be known as the “Cadillac Tax.” This is a 40 percent tax on employer-sponsored health benefits that are defined as “excess benefits.” That means anything in excess of $10,200 (employee only) or $27,500 (family) coverage for 2018, with adjustments for subsequent years. The “excess benefit” includes not only benefits provided by the employer, but also the portion of premium paid by the employee, as well as any money the employee chooses to set aside out of salary to pay for health expenses via a Flexible Spending Account (FSA).