Monday, December 16, 2019

Santa Claus is coming to town

Federal News Network and Govexec.com report that the omnibus spending bill includes the 2.6% across the board pay raise for federal employees plus a 0.5% locality pay increase as proposed by the House of Representatives. President Trump had proposed just the 2.6% increase. The pay increase would take effect on January 1, 2020.

The Hill reports that this bill also would repeal all three of the most controversial ACA taxes -- the medical device tax, the health insurer tax, and the high cost plan / Cadillac tax. This is great news for the FEHBP which has been smacked by the health insurer tax and would be greatly disrupted by the Cadillac tax. The bill also would put pressure on Congress to resolve the surprise billing and drug cost issues by May 22 and it would raise from 18 to 21 the age at which young adults can purchase tobacco products.

Jingle bells. The final text of the bill remains under wraps.  The House is expected to vote on the bill tomorrow followed by the Senate. The current continuing resolution expires on Friday December 20.


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