The Looming Battle over the Cadillac Tax

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One of the last pieces of the Affordable Care Act (ACA) to take effect is the Cadillac Tax.  Effective on January 1, 2018, it imposes a 40 percent excise tax on high-cost employer plans above a certain threshold.  For 2018, the thresholds are $10,200 for self-only coverage and $27,500 for family coverage (i.e. any coverage tier other than self-only).

The Cadillac Tax is controversial and not particularly well liked by either business groups or unions.   In fact, many anticipate a protracted battle to take place with these two groups leading the way.  A recent Politico article lays out the growing concerns these groups have about what the tax may cost when it’s triggered in 2018.