Shaheen-Backed Adjustments to Healthcare Law Included in End-of-Year Government Funding Bill
Legislation would delay implementation of medical device tax and “Cadillac” tax
(Washington, DC) – Today U.S. Senator Jeanne Shaheen (D-NH) welcomed the inclusion of provisions in an end-of-year government funding bill that make adjustments to the Affordable Care Act that will help small businesses and manufacturing in New Hampshire. The “omnibus” government funding bill released late last night, includes a two year delay of the “Cadillac tax” which was scheduled to go into effect in 2018 and would impose a 40 percent nondeductible excise tax on health plans with values exceeding $10,200 in coverage for singles and $27,500 for families and could have an impact on small businesses offering healthcare plans.
“Granite Staters want to see Congress working together to improve healthcare reform,” said Shaheen. “Delaying this tax is a practical adjustment for New Hampshire businesses that has broad bipartisan support and I’m pleased that it now has a path forward to becoming law. However, Congress should also begin looking at a long-term solution to this tax, so that it’s no longer hanging over the head of Granite State businesses. I will continue to urge Congress to work across the aisle to ease the burden on employers providing health insurance for their workers.”
A provision delaying the medical device tax by two years was also included. Shaheen has been vocal about the need to repeal the medical device tax which went into effect last year and imposes a 2.3 percent excise tax on medical products.
“I’ve been a strong advocate for repealing the medical device tax because it would do real harm to New Hampshire’s manufacturing economy,” said Shaheen. “I’m very pleased that this bill delays its implementation.”
Shaheen has been a leader in efforts to improve the Affordable Care Act for patients and businesses in New Hampshire and across the country. She has cosponsored legislation to repeal both the medical device tax and Cadillac tax, and earlier this year, she successfully passed the first bipartisan legislative fix for the healthcare law, the Protecting Affordable Coverage for Employees (PACE) Act.