The Affordable Care Act included an excise tax on rich employer-sponsored health coverage. Many referred to this as the “Cadillac tax.” The Cadillac tax is a 40% tax on the value of employer-sponsored health coverage exceeding $11,200 for individuals and $30,100 for families (adjusted for cost of living).
The Cadillac tax has been a hotly contested aspect of the ACA. It was originally scheduled to take effect in 2018, but was delayed twice by legislation for a 2022 effective date.
Last week the U.S. House of Representative voted to repeal the Cadillac tax in its entirety. The U.S. Senate is expected to follow suit. This action will further erode the Affordable Care Act’s impact on Americans’ health coverage.
