Spending Bill Repeals ACA Taxes

///Spending Bill Repeals ACA Taxes

Spending Bill Repeals ACA Taxes

On Thursday, the U.S. Senate passed a spending bill that repeals three ACA taxes as well as postpones Medicaid payment cuts. The spending bill was voted for approval 71 – 23 in the Senate. The President is set to sign off on the spending bill to prevent a federal government shutdown.

The spending bill also includes a funding extension for several Medicare and Medicaid priorities through May 22. Although the spending bill has some cuts and repeals multiple taxes, it does not address the surprise medical bills or lower prescription drug costs.

The push to repeal the three ACA taxes have been lobbied for years. One of the ACA taxes, the Cadillac tax, puts a 40% excise tax on high-cost employer plans that are not put into effect. The other ACA tax is a health insurance tax and a 2.3% excise tax on medical devices.  According to the Congressional Budget Office, the spending bill will cost federal taxpayers about $400 billion across the next decade. Sen. Bill Cassidy (R-La.) had voted against the spending bill, stating that “This legislation increases the deficit by $400 billion and lets health insurance companies skip out on taxes they agreed to pay in order to force Obamacare onto Americans. Now, insurance companies are making record profits and they don’t want to pay the taxes they agreed to pay.”

According to House Republican Kevin Brady of Texas, to “Repeal of 3 most egregious ObamaCare taxes is victory for families, workers & U.S. medical innovation.” 

Read the original article from Modern Healthcare here.

By | 2019-12-20T10:34:50+00:00 December 20th, 2019|Articles, Government Mandates and Compliance|0 Comments