The 40 percent tax on particularly generous coverage is strongly opposed by businesses and unions who say it punishes them for providing generous coverage to plan enrollees, and Democrats have proposed delaying its implementation for two years.
On the other hand, Republicans have proposed delaying the medical device tax and health insurance tax, but they plan on including the Cadillac tax in the year-end funding bill.
Rep. Kevin Brady, R-Texas, questioned why Democrats would include the provision in the ACA if they thought its effects would be so negative.
“My sense is that Democrats want to tackle the medical device tax, and delay it, the health insurance tax is very damaging, and the Cadillac tax as well,” Mr. Brady said, according to The Hill. “One key question is, why did they put them in place in the first place if they’re this damaging to families and businesses and jobs?”
Rep. Joe Courtney, D-Conn., a leading opponent of the tax, said a potential compromise between Republicans and Democrats could be including an exemption for employer-sponsored coverage with the tax.
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