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Tuesday, Sep 22 2015

Full Issue

Question Remains: Will New Obamacare Tax Force Employers To Drop Coverage?

The so-called "Cadillac tax" may leave some employers unwilling to provide health coverage to employees. And, Republicans eye allowing states to choose their own experiments on expanding health coverage as a means to getting rid of Obamacare.

A new tax imposed by the Affordable Care Act that is poised to take effect in 2018 could prompt some employers to curtail or perhaps eliminate health benefits for their workers, experts predict. Commonly referred to as the 鈥淐adillac鈥 plan tax, it will be levied on those issuing, providing or administering employer-sponsored health insurance exceeding certain cost thresholds: $10,200 annually for a health plan covering one person or $27,500 annually for family coverage. (O'Hare, 9/21)

Forget "repeal and replace." An obscure Obamacare provision that takes effect in 2017 could empower a Republican president to unravel Obamacare 鈥 without a single vote from Congress. The provision allows the executive branch to waive big chunks of the law for a state that chooses a different approach to expanding health coverage. It was designed to allow progressive states to go further than Obamacare. Vermont, for instance, wanted to create a single-payer plan. But the tool (known as a "1332 waiver") could turn out to be an important lever for Republicans, especially if they control the White House. (Pradhan, 9/22)

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