The Cadillac tax was designed to curb healthcare costs under President Barack Obama’s signature healthcare law. Employers could avoid its impact by replacing expensive health plans with cheaper ones.
“I’m not proposing eliminating it at this point, I’m open to suggestions for changing it,” Illinois Senator Dick Durbin (D) told Reuters. “I don’t know if it’ll be done this year or next year, but we’re trying to figure out a way to change it or remove it and the impact it would have.”
While Congressional Republicans have been steadfast in their opposition to the ACA in its entirety and have repeatedly called for the elimination of the Cadillac tax, the tax has become increasingly unpopular even among Democrats. This is partially because labor unions say it will lead to employers offering subpar health plans to their employees.
Earlier this fall, former Secretary of State and Democratic presidential front-runner Hillary Clinton called for a repeal of the Cadillac tax, saying the estimated $87 billion in lost revenue would be made up by her healthcare reform plan.
Another leading Senate Democrat, Harry Reid of Nevada, also said he supports changing the Cadillac tax.
While the White House on Monday defended the tax, spokesman Josh Earnest did not rule out the possibly that changes could be made to it.
“This law does not take effect until 2018. So we’ll be able to evaluate exactly how it would go into effect. And if in that intervening time there are ideas that are put forward that will strengthen the law, then we’re open to a conversation about that,” Earnest said.
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