Congress repeals ‘Cadillac’ tax


Two features of Obamacare that were opposed by organized labor were eliminated in a bill President Donald Trump signed into law Dec. 20.

One was the Affordable Care Act’s so-called “Cadillac tax”—a 40% excise tax on employer-sponsored insurance premiums that exceed $10,200 for individual and $27,500 for family coverage. That would have led to benefit cuts for union-negotiated plans in some industries and parts of the country. The tax was originally supposed to begin in 2018, but Congress repeatedly stepped in to delay it; it was most recently set to take effect in 2022.

The other was an annual fee on health insurers, which raised the cost of many union-negotiated health insurance benefits.

Both fees—and a medical device tax which was also repealed—were meant to help pay to expand Medicaid and subsidize lower-income individuals who buy insurance on state-managed exchanges. With the taxes repealed, those costs will come out of the government’s general revenues.

In the House, 218 Democrats voted for the bill to repeal the Obamacare taxes, 7 against, while 112 Republicans voted against and 79 for. All five Oregon representatives, plus Southwest Washington’s Jamie Herrera Beutler (R) voted for it, as did all four Oregon and Washington senators.


Please enter your comment!
Please enter your name here

Read more