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Thursday, Dec 17 2015

Full Issue

'Cadillac Tax' Supporters Worry Delay Is Acutally Death Knell

Although the lost revenue from the two-year postponement isn't enough to have a lasting impact on the health law, opponents and advocates alike see it as a step toward axing the tax. Meanwhile, experts say it won't do much to relieve workplace coverage costs.

Industry groups trying to repeal the Cadillac tax as well as supporters who are working to preserve it say they see the two-year delay as a step toward axing the tax. (Radnofsky, 12/16)

The congressional Joint Committee on Taxation has estimated that the tax would bring in $2.2 billion in 2018 and $7.2 billion in 2019. Its revenue would balloon after that, totaling an estimated $91 billion by 2025. ... Peter Orszag, President Barack Obama鈥檚 first director of the Office of Management and Budget, said that 鈥渢he big concern with delay is, it鈥檚 not a delay, it becomes a rolling permanent deferral.鈥 (Goldstein, 12/16)

Don鈥檛 expect to see much relief from rising costs for workplace health coverage under a federal budget deal that postpones a widely feared tax on generous insurance plans, experts say. The so-called Cadillac tax, which would be delayed two-years in the proposed deal, meant to discourage extravagant coverage and help keep costs in check. (Alonso-Zaldivar, 12/16)

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