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Wednesday, Sep 30 2015

Full Issue

Hillary Clinton Supports Scrapping The Health Law's 'Cadillac Tax'

She has described her support for repealing the tax, which news outlets report as a step that could help her claim more labor-union backing, as a change that would strengthen the health law.

Hillary Rodham Clinton will in the coming days speak out against the so-called Cadillac tax on certain health care plans, a move that is part of a series of reforms she鈥檚 suggesting for the Affordable Care Act, according to a union official briefed on her plans. Mrs. Clinton鈥檚 campaign aides informed Randi Weingarten, the president of the American Federation of Teachers, of her intentions in the last few days, according to a senior official with the labor group. The union made an early endorsement of Mrs. Clinton in July. (Haberman, 9/29)

Mrs. Clinton, the front-runner for the Democratic presidential nomination, has attempted to strike a balance on the 2010 health law. She has vigorously defended the law while also promising to address what are seen as its shortcomings. Last week, she proposed new caps on out-of-pocket costs on private insurance plans. On Tuesday, she described repealing the tax as 鈥渟trengthening鈥 the law while reiterating her view that the law is working well. (Meckler and Armour, 9/29)

Clinton will propose alternative revenue plans to make up for the lost money, her campaign said. ... She had indicated skepticism about the Cadillac tax and said she was examining possible changes. The tax is a major 鈥減ay-for鈥 to offset increased costs under the ACA, and was one of the major cost-curbing mechanisms in the law, with then-CBO Director Douglas Elmendorf calling it one of two "powerful policy levers for encouraging changes in medical practice.鈥 (Gearan, 9/29)

Many unions have held off from endorsing Clinton, often because their rank-and-file members prefer her primary opponent Vermont Sen. Bernie Sanders and their leadership wants to wait and see if Vice President Joe Biden decides to enter the 2016 race. Last week, Sanders and seven other Democratic Senators introduced a plan to repeal the tax. (9/29)

The move by Clinton, the Democratic front-runner in the 2016 White House race, is a break with the Obama administration that could win her more backing from some of the labor unions critical to her White House bid. Labor unions oppose the tax because their members often receive more generous healthcare plans and they fear it would raise their costs. (Whitesides, 9/29)

The controversial tax, which has been repeatedly delayed, is still three years away from implementation. It has drawn opposition from union groups and Democrats in areas such as New England and the West Coast, where health insurance costs are higher. (Ferris, 9/29)

Clinton has been rolling out proposed changes to the Affordable Care Act, including plans to crack down on high prescription drug costs and lower out-of-pocket costs for families. But she has been a vocal supporter of the law as she campaigns for the Democratic nomination. (Kaplan, 9/29)

In other news -

Some 15 years had passed since Bill and Hillary Clinton鈥檚 health care legislation failed when Senator Edward M. Kennedy sat for a 2008 oral history interview, but his frustration over the couple鈥檚 handling of the measure seemed to anger him as much as ever. 鈥淚 think everybody understands now that that was a catastrophic mistake,鈥 Kennedy told a historian from the University of Virginia鈥檚 Miller Center, according to transcripts released this week. (Kranish, 9/30)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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