COALITION AIMS TO REPEAL ECONOMICALLY DEBILITATING NEW LEVY
|| By FITSNEWS || U.S. president Barack Obama‘s socialized medicine law has survived two challenges before the U.S. Supreme Court and multiple attempts at repeal by “Republicans” in Congress.
Now we’re writing about a new effort to do away with one of the law’s most onerous provisions – the so-called “Cadillac Tax.”
The Cadillac Tax refers to a non-deductible levy of 40 percent of the value of employer-sponsored health care coverage (exceeding certain benefit thresholds). Originally this tax hike was billed as impacting only a small percentage of health plans, however it is now expected to impact broad swaths of the 150 million-strong employer-sponsored health care universe.
“This tax does not hit ‘Cadillac’ plans,” James A. Klein, president of the American Benefits Council said in a statement. “It hits ordinary plans that are expensive simply because they cover many people whose health costs are generally higher than average – women, older and disabled workers and families who experience catastrophic health events.”
Among those likely to fall victim to the levy? Retirees, low- and moderate-income families, small business owners and individuals who are self-employed. Obviously, such added burdens could have severely detrimental impacts on a U.S. economy that’s already struggling to regain its post-recessionary momentum.
A bipartisan coalition in Washington, D.C. – dubbed “Fight the 40” – is working to repeal the tax. Its ultimate goal? “To ensure that employer-sponsored coverage remains an effective and affordable option for working Americans and their families.”
If the Cadillac Tax isn’t repealed, though, maintaining such effectiveness and affordability could prove exceedingly problematic …
In fact it already is. According to the coalition, employers are already cutting benefits and changing the designs of their plans in anticipation of the tax kicking kicking in beginning in 2018. Also, each year the mandate will snare more plans … from 48 percent of large employer plans in 2018 to a whopping 82 percent of them by 2023, according to a recent study.
“The way it’s structured ‘Cadillac tax’ is now a misnomer,” one industry source told FITS. “It’s more like a Ford Fiesta tax.”
In other words it’s going to hurt a lot more people than its supporters would have you believe …