Health Care Update - December 2015

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Cadillac Tax Repeal Garners Bipartisan Support; Prospects for Implementation Delay Increase -

Last week, the Senate passed its reconciliation package by a vote of 52-47, sending it back to the House for approval and moving it one step closer to President Obama’s desk. While the reconciliation measure faces a certain veto, Congressional efforts do not appear to be a complete exercise in futility, as some major reforms to the Affordable Care Act could be acted on in the coming weeks.

For example, an amendment to repeal the Cadillac tax, introduced by Senators Dean Heller (R-NV) and Martin Heinrich (D-NM), cleared the Senate by an overwhelming 90-10 vote. While it was merely a messaging point in the reconciliation package, this action on the Senate floor could signal potential action on the tax extenders front or as part of another end-of-year legislative vehicle, with negotiators meeting around the clock to hammer out an agreement. One potential outcome is that the Cadillac tax would be delayed two years from its 2018 implementation date.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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