The report issued Tuesday, September 11, estimates the cost of the legislation, “Save American Workers Act,” at $25.9 billion if the federal government retroactively suspends four years worth of penalties (2015-2019) for the employer mandate and $18.6 billion if the employer mandate only applies to employees working 40 hours rather than 30, as in existing law.
Under the Affordable Care Act, employers with 50 or more employees working an average of 30 hours a week or more must offer health coverage or pay fines. The bill also delays The Cadillac tax on high-cost employer sponsored health plans to December 31, 2022 at a cost of $15.5 billion.
This bill is a remix of previous legislation under the same name that the House has passed before; it has not ever made it to the president’s desk for signature.
President of the American Benefits Council James Klein in a letter to House leadership argued his organization’s support for the Cadillac tax delay and eventual elimination.
Because employers typically plan for benefits several years in advance, the looming threat of this tax is sufficient to compel employers to take action well before the expected effective date. Full repeal is the only real solution to this problem. However, an additional delay constitutes a vital step toward our ultimate goal of total repeal.
The House Rules Committee met Wednesday to prepare the legislation introduced by Rep. Jackie Walorski (R-IN) for a floor vote in the House of Representatives later this week.
According to Inside Health Policy, the legislation also includes banning the excise tax on tanning services and modifies when an issuer is required to send an individual health insurance coverage statement.
Review the CBO’s numbers on the legislation.
Read coverage from The Hill