Foes of Tax on ‘Cadillac’ Health Plans Gain, but Challenges Remain

via Wall Street Journal

Esteban Lovato, a doctor at the La Loma Medical Center, does a routine check-up with a patient at the center's clinic in Oakland, Calif., last year.

There is more support than ever on Capitol Hill for rolling back the health law’s tax on high-cost employer health plans—notably from some Democrats usually opposed to paring back the law, as well as from many Republicans. But divisions among legislators still could stall efforts to tweak the tax or eliminate it completely.

Critics of the tax are divided over whether to find another source of money to replace the billions of dollars that would be lost if the levy is abolished, and if so, what it should be. They also are under pressure from two powerful groups: Affordable Care Act supporters who say they will fight to protect the law, and conservative critics who want the entire law dismantled.

Efforts to overturn the 40% excise tax got a bipartisan boost Tuesday when Democratic presidential candidate Hillary Clinton threw her support behind repealing it, and House Ways and Means Chairman Paul Ryan (R., Wis.) included a repeal of the so-called Cadillac tax and other rollbacks of health-law provisions in a larger budget bill.


About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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