Presidential candidate Hillary Clinton says to axe it, and efforts in both Houses of Congress are gaining steam to do just that: end the so-called Cadillac Tax that’s set to take effect in 2018 as part of the Affordable Care Act (ACA).
The 40-percent tax on individual health plans that cost $10,200 or more a year and on family plans that cost $27,500 or more annually, if not repealed, is expected to raise $87 billion through 2025, according to official estimates.
Just this week, 11 Democrats, including presidential aspirant Sen. Bernie Sanders (I-Vt.), backed legislation to repeal the tax. And in the House of Representatives, an effort is under way to include a repeal provision in an upcoming budget reconciliation measure.
The problem with the tax, according to foes, is that it not only hits people with overly generous health plans, but also the elderly and disabled, whose higher-priced policies could trigger the tariff.
For the full story on how the Affordable Care Act (ACA, or Obamacare) affects your business, no matter how large or small, please obtain a copy of our comprehensive yet easy-to-follow Affordable Care Act Compliance Kit.