Cadillac Tax on health plans may be headed for repeal
The politics of health care are changing. And one of the most controversial parts of the Affordable Care Act — the so-called “Cadillac tax” — may be about to change with it.
The Cadillac tax is a 40% tax on the most generous employer-provided health insurance plans — those that cost more than $11,200 per year for an individual policy or $30,150 for family coverage. It was a tax on employers and was supposed to take effect in 2018, but Congress has delayed implementation twice.
And the House, now controlled by Democrats, recently voted overwhelmingly — 419-6— to repeal that part of the ACA entirely. A Senate companion bill is bipartisan and now has a total of 61 co-sponsors — more than enough to ensure passage.
The tax was always an unpopular and controversial part of the 2010 health law, because the expectation was that employers would cut benefits to avoid the tax. Still, ACA backers initially said the tax was necessary to help pay for the law’s nearly $1 trillion cost and help stem the use of what was seen as potentially unnecessary care.