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It’s time to repeal the Cadillac tax on employer-sponsored health insurance

Remember when President Barack Obama said that passage of the Affordable Care Act would save middle class families $2,500 a year on their health insurance premiums? Obama claimed much of that savings would come from taxing so-called “Cadillac Plans” that gave the rich “overly generous” benefits, and using that windfall to help fund Obamacare.

Well, as we’ve seen, premiums have skyrocketed around the country, only nominally more people are insured, and it has become clear that “Cadillac Plan” is a misnomer, and these plans aren’t only the purview of the rich and generously insured. The same middle-class Americans Obama claimed the ACA would help are the very people who will end up being hit by the 40 percent tax on employer-sponsored health care coverage.

This tax is an onerous 40 percent tax assessed on employer-sponsored health insurance plans valued at more than $10,800 for individual coverage and $29,100 for family coverage in 2020. These threshold¬†amounts include the costs of the very programs that employers use to help control costs and keep their workers healthy,¬†like on-site medical clinics and wellness programs. Any businesses providing employees with insurance valued higher than those modest thresholds will be hit with the staggering tax, increasing the company’s costs for each employee by more than $8,000 per year.

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