Co-ops Lead the Way in Efforts to Repeal the Excise Tax

NRECA continues its efforts on behalf of rural electric cooperatives to repeal the Affordable Care Act’s (ACA) excise tax, commonly referred to as the “Cadillac tax.” Our message is simple: no electric co-op, whether they provide health insurance through NRECA’s Group Benefits Trust or from another source, should ever be subject to this unfair tax on health plans.  This provision of the ACA levies a 40% excise tax on health plans that are worth $11,850 (individual coverage) and $30,950 (family coverage) for groups whose majority of employees are engaged in a high-risk profession or employed to repair or install electrical or telecommunications lines. This tax, which will affect health benefits offered by many co-ops, is scheduled to go into effect in 2018.

Fight the 40
NRECA remains committed to supporting all efforts that ensure health care stays reliable and sustainable so co-ops can afford to maintain these critical employee benefits. As one of the founding members of the newly formed “Fight the 40” alliance, NRECA is encouraging Congress to pass legislation to fully repeal the excise tax. This coalition represents public and private sector employers, businesses and unions who are focused on the full repeal of the excise tax for all employers nationwide.

Currently, over 200 members in the House of Representatives are co-sponsoring legislation (H.R. 879 and H.R. 2050) to repeal the tax.

Stay informed
We’ve posted talking points and actionable steps, as well as helpful background information on the ACA, for all member co-ops on NRECA.coop > NRECA on the Issues > Cooperative Business Issues > Health Care Reform. If you have specific questions about how the tax could affect your co-op, please contact your local field representative.