The Cadillac tax is a 40 percent excise tax on excessive employer-sponsored coverage — anything over $11,200 for individuals or $30,150 for families. The tax was a largely unpopular provision of the law, and it has been delayed twice since the ACA was passed. It goes into effect in 2022.
The bill was reintroduced in January by Rep. Joe Courtney, D-Conn., who opposes the tax because he believes it would ultimately burden workers, as employers shift more costs onto them or cut back on benefits to avoid the tax. Mr. Courtney’s website also notes actuarial analysis has suggested the tax could disproportionately affect some groups, such as older workers and women.
Though largely unpopular, the tax was intended to be one of the main revenue-generating taxes for the ACA. If the Cadillac tax is repealed, it could increase the federal deficit by nearly $197 billion over the next 10 years, according to the Congressional Budget Office.
More articles on leadership and management:
Viewpoint: Perception of scarcity is one of healthcare’s greatest ills
Bernie Sanders won’t accept donations from payers, pharma companies
House launches rural healthcare task force
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.