HEALTHCARE/OBAMACARE(ACA)/TAXES: “Industry groups are ramping up a campaign to repeal or delay two Affordable Care Act taxes that have critics in both parties, the latest effort to tackle the health-care system following the collapse of the broad Republican push to repeal the Obama-era law.
The taxes, one on medical devices and another on health-insurance plans, were previously delayed in late 2015 as part of a larger spending package. They now are set to take effect beginning in 2018, unless Congress postpones them again or kills them off entirely.
While many Republicans and some Democrats agree the levies should be jettisoned, they fear that tying the taxes’ demise to other legislation could hold up more pressing congressional priorities and potentially reopen a larger fight over repealing parts of the 2010 health-care law, according to congressional aides and others familiar with the discussions.
Advocates for halting the taxes say the bipartisan vote to put them off in 2015 shows the move has support even among ACA supporters…
The medical-device tax levies a 2.3% charge on the sale of many medical devices, and is paid by manufacturers and importers. Device makers say the tax would stifle innovation, while their critics say they want an unfair exemption to the taxes the ACA imposes on many parts of the health-care industry.
The health-insurance tax, in turn, functions as a sales tax on coverage, paid by insurance companies. Insurers say this tax would sharply accelerate premium increases, but critics say it is a reasonable levy given the benefits insurers get from the ACA, including many new customers.”
-Michelle Hackman, “Industry Groups Push for Repeal or Delay of Two Affordable Care Act Taxes,” The Wall Street Journal online, Sept. 5, 2017 03:04pm