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 BrownLawmakers grapple with the future of America's workforce The Hill's Morning Report - Presented by Pass USMCA Coalition - Restrictive state abortion laws ignite fiery 2020 debate On The Money: Mnuchin signals officials won't release Trump tax returns | Trump to hold off on auto tariffs | WH nears deal with Mexico, Canada on metal tariffs | GOP fears trade war fallout for farmers | Warren, regulator spar over Wells Fargo MORE (D-Ohio), Martin HeinrichMartin Trevor HeinrichCongress readies for battle over nuclear policy Overnight Defense: Trump tells NRA he will pull US from arms treaty | Pentagon to broaden role of troops at border | Warren offers plan to improve military housing Warren unveils plan to address substandard military housing 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 gambles in push for drug import proposal Biden's role in Anita Hill hearings defended by witness not allowed to testify 'Congress' worst tax idea ever'? Hardly. 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 DurbinLet's stop treating student borrowers like second-class citizens Trump's immigration push faces Capitol Hill buzzsaw Hillicon Valley: Trump takes flak for not joining anti-extremism pact | Phone carriers largely end sharing of location data | Huawei pushes back on ban | Florida lawmakers demand to learn counties hacked by Russians | Feds bust 0M cybercrime group 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.