The 2010 Affordable Care Act (ACA) sharply reduced taxpayer subsidies last year for executive pay at the nation's 10 largest publicly held health insurance companies, according to a new report by the Institute for Policy Studies (IPS), a Washington-D.C.-based think tank.
Last year, an ACA provision took effect that put a $500,000 cap on the tax deductibility of health insurer executive compensation. Previously, the companies had a $1 million limit on the deductibility of executive pay from federal corporate income taxes. Now, health insurance companies are allowed to deduct only up to $500,000 in combined performance-based and salary pay per employee each year.
Senate Democrats say they will advance legislation to override the Supreme Court's recent ruling allowing some companies with religious objections to avoid the contraceptives requirement in President Barack Obama's health care law.
The Obama administration said Wednesday that the Supreme Court's ruling in favor of the religious claims of Hobby Lobby and other for-profit businesses supports the government's position in separate, ongoing disputes with religious-oriented nonprofit organizations.