The Retail Industry Leaders Association (RILA) issued the following statement in response to a two-year delay of the 40 percent excise tax on employer plans, which is included in the fiscal year 2016 spending omnibus package.
"RILA welcomes the two-year delay of the ACA's illogical penalty against employers who offer quality health coverage and benefits, but we will continue to press for its full repeal," said Christine Pollack, vice president for government affairs. "The 40 percent excise tax threatens the benefits that retailers provide to millions of retail employees and their families."
"Retailers fully embrace the concept that investing in a healthy workforce today lays the foundation for a healthier society and a workforce with a higher quality of life. The 40 percent excise tax is counterproductive to achieving these goals. The 40 percent excise tax stifles employers' ability to create innovative plan designs and willingness to incorporate such things as consumer directed health products and on-site clinics into their coverage structures," added Pollack.
The 40 percent excise tax, also referred to as the Cadillac tax, applies to coverage for current and former employees, a surviving spouse and dependents. The 40 percent tax will be levied on benefits including an employer-sponsored health plan, employer and employee contributions to consumer directed health products, and services in on-site medical clinics.
RILA is the trade association of the world's largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers. RILA members offer quality and affordable health care to their employees and dependents, and are leaders in benefits design by customizing plans to meet their workforces' specific needs.