When the Affordable Care Act, passed by Congress in 2010, among the more controversial “pay for” provisions was a tax of 40 percent on what the are referred to as “Cadillac Plans”. While they are often portrayed as unusually expensive health plans, “unusually expensive” can be in the eye of the beholder.
Here’s what you need to know:
- More than 1,000 employers wrote to Senate leadership Thursday pleading for it to take up legislation to repeal a controversial excise tax on high-cost employer-based health plans slated to go into effect in 2022.1
- The groups, which run the gamut from payer lobby America's Health Insurance Plans to the U.S. Chamber of Commerce, argue the tax will have sweeping effects beyond just "gold-plated" health coverage and raise premiums and out-of-pocket costs for the almost 180 million Americans covered through their employer.2
- The so-called Cadillac tax was originally slated to start in 2018 but has been delayed twice through bipartisan votes.3
- The Cadillac tax, meant to level the playing field between those purchasing coverage on the Affordable Care Act exchanges and those getting employer-sponsored plans, would produce $183 billion in federal revenue through 2029, according to the Congressional Budget Office— $96 billion directly from employers.4
- The House overwhelmingly passed a bill repealingthe tax in July by a bipartisan vote of 419-6. The legislation is currently awaiting action in the Senate, where a third of senators are now co-sponsoring a comparison bill to repeal.5
Please contact Senator Carper and Senator Coons to urge them to vote the repeal of the Cadillac Tax!
Senator Chris Coons
1105 N. Market Street
Wilmington, DE 19803
Senator Tom Carper
301 North Walnut Street
Wilmington, DE 19801-3974
Phone: (302) 573-6291
Fax: (302) 573-6434