Advancing Colorado Executive Director Jonathan Lockwood released the following statement:
“This so-called repeal bill is like renaming a disease instead of providing a cure. People don’t like to see politicians play these kinds of games with our health care because it is a matter of life and death. Coloradans want to see genuine health care reform that provides more options and choice, without new taxes piled on top of already-soaring health care costs.”
The “Cadillac Tax” was scheduled to go into effect in 2018, and is a 40 percent excise tax on high-cost health plans provided by some employers. The intention was to reduce overall healthcare costs by encouraging employers to offer cost-effective health benefits.
The Obamacare-imposed Cadillac tax is a 40 percent non-deductible excise tax on health plans for values exceeding $10,200 in coverage for individuals and $27,500 for families. The provision is indexed to inflation meaning it will rise over time and potentially affect all employer-sponsored plans.
The Cadillac Tax “repeal” bill would repeal the excise tax while demanding the repeal be paid for through a new tax. The Cadillac Tax is projected to collect $80 billion between 2018 and 2023 meaning the new tax would have to rake in as much or more.
According to The Hill, “experts say people living in areas with higher costs of living, particularly cities along both coastlines, will be hit hardest by the [Cadillac] tax.”