Cadillac Tax Repeal?

Cadillac Tax Repeal?

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Tax money on top of insurance papers

There’s not much about Obamacare that Democrats and Republicans DO agree on. But getting rid of the Cadillac tax is one of the rare points of unity.

House lawmakers came together to repeal the provision that would have levied a tax on high-cost health insurance plans. The bill awaits the President’s signature, which is expected.

The Trump administration is continuing its quest to dismantle the entire Affordable Care Act, arguing last week in an appellate court alongside a coalition of Republican states who say the law is unconstitutional.

Congress is also looking to find bipartisan ways to lower drug prices and end surprise medical bills.

The Cadillac tax has been controversial since it was included in the Affordable Care Act in 2010 — so much so that Congress has delayed it on multiple occasions.

The provision would have levied a hefty 40% tax on the value of employer-provided health coverage above a certain cap — initially, projected to be $10,200 for individual coverage and $27,500 for family plans in 2018, when the tax was supposed to start. It is now set to begin in 2022.

The goal is to control the growth of health care spending: thinking that eliminating pricier benefit plans will curtail excess health care usage.

Employers and unions quickly banded together to fight it, fearing they’d have to curtail workers’ health benefits to avoid the tax. The battle has been won. The war continues.


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