The $1.8 trillion funding package President Obama signed into law on Friday took a $35 billion bite out of his signature health reform law.
- The “grand bargain” delays three health care-related taxes:
- The “Cadillac tax” on high-value health plans.
- The medical device tax.
- And a health insurer “premiums” tax.
The Cadillac tax, which was set to take effect in 2018, was “one of the most hotly contested aspects of the health care law” from the start, as The Hill reports.
The tax targeted the most generous benefits packages, those worth more than $10,200 for individuals and $27,500 for families. Unions, business groups and patient advocacy groups alike lobbied against it.
Employers want the 40 percent levy on benefits plans above those thresholds repealed altogether. The purpose of the tax was to reduce health care spending by discouraging extravagant benefits and giving consumers more “skin in the game,” as well as raising revenue to help cover insurance subsidies for those purchasing their own coverage through health exchanges.