Lawmakers press Obama for meeting on ObamaCare tax

Lawmakers press Obama for meeting on ObamaCare tax
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A bipartisan group of lawmakers is requesting a meeting with President Obama to discuss repealing ObamaCare’s “Cadillac Tax.”

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The 40 percent tax on high-cost health insurance plans, set to take effect in 2018, was intended to help restrain healthcare costs, but it has drawn opposition from some lawmakers on both sides of the aisle worried that it will end up shifting healthcare costs onto workers. 

Sens. Dean HellerDean Arthur HellerThis week: Barr back in hot seat over Mueller report Trump suggests Heller lost reelection bid because he was 'hostile' during 2016 presidential campaign Trump picks ex-oil lobbyist David Bernhardt for Interior secretary MORE (R-Nev.), Sherrod BrownSherrod Campbell BrownThe Hill's Morning Report — Trump applauds two-year budget deal with 0 billion spending hike The Hill's Morning Report - A raucous debate on race ends with Trump admonishment On The Money: Senators unload on Facebook cryptocurrency | Tech giants on defensive at antitrust hearing | Democrats ask Labor Department to investigate Amazon warehouses MORE (D-Ohio), Martin HeinrichMartin Trevor HeinrichHillicon Valley: Harris spikes in Google searches after debate clash with Biden | Second US city blocks facial recognition | Apple said to be moving Mac Pro production from US to China | Bipartisan Senate bill takes aim at 'deepfake' videos Senators unveil bipartisan bill to target 'deepfake' video threat Senate Democrats wish talk on reparations would go away MORE (D-N.M.) and Reps. Joe Courtney (D-Conn.) and Frank Guinta (R-N.H.) wrote to President Obama on Tuesday requesting a meeting “as soon as possible.”

“Finding a path forward on the repeal of this provision is a bipartisan and bicameral end-of-year priority for each of us and a large number of our colleagues on both sides of the aisle,” the lawmakers write. “As we continue to negotiate the repeal of this tax in pending, must-pass legislative packages in Congress, we respectfully request a meeting with you to discuss a plan to eliminate this tax.”

Repealing the tax is also a priority of Democratic leadership in both chambers. Republicans are against the tax as well, but many could be reluctant to hand Democrats a win on an issue they view as created by Democrats. 

The lawmakers indicate in the letter that they are looking to include repeal of the tax in a larger package. 

Heller on Tuesday gave a speech on the Senate floor suggesting that Cadillac Tax repeal could be included in a package renewing a range of tax breaks known as “tax extenders.”

White House Press Secretary Josh Earnest defended the tax earlier this month as a way to bring down healthcare costs and to pay for the Affordable Care Act. 

He also noted, though, that, “We are always in a position to have conversations with people that have an authentic interest in strengthening the Affordable Care Act.”

The tax is projected to bring in $91 billion over ten years. 

Senate Finance Committee Chairman Orrin HatchOrrin Grant HatchTrump to award racing legend Roger Penske with Presidential Medal of Freedom Trump awards Presidential Medal of Freedom to economist, former Reagan adviser Arthur Laffer Second ex-Senate staffer charged in aiding doxxing of GOP senators MORE (R-Utah) earlier this month noted that is “a lot of money” and makes paying for repeal a challenge. 

Sen. Dick DurbinRichard (Dick) Joseph DurbinDemocrats pledge to fight Trump detention policy during trip to border Dems open to killing filibuster in next Congress Democrats warm to idea of studying reparations MORE (D-Ill.), though, has suggested that repeal of the tax would not need to be paid for. 

The lawmakers on the letter warn that employers will increase the deductibles and other out of pocket expenses that employees have to pay in a bid to avoid hitting the tax. The tax hits plans with costs that exceed $10,200 for individuals or $27,500 for families. 

Defenders of the tax argue that it gives employers an incentive to support payment reforms and efficiencies to bring down the cost of healthcare, and that to a certain extent increased cost-sharing from employees gives them an incentive to seek out more efficient, lower-cost care.