November 10, 2015
By Steven Wishnia and Neal Tepel
Senate Minority Leader Harry Reid (D-Nev.) and House Minority Leader Nancy Pelosi (D-Calif.) are looking for ways to repeal the impending 40% excise tax on health-insurance plans deemed too extravagant by the Affordable Care Act of 2010.
The two have been talking with President Obama since the spring about repealing the so-called “Cadillac tax” before it goes into effect in 2018. Labor unions have condemned the tax, calling it an incentive for employers to switch to inadequate coverage that costs workers more. “It is clearly a commitment for the Democratic leadership,” AFL-CIO lobbyist Tom Leibfried told The Hill Nov. 6. “We think there’s a real chance to get this done, as big a lift as this is.” One possibility is that congressional Democrats could attach a repeal amendment to a tax-extender package that will come up before the end of the year. However, the Obama administration has contended that the tax will bring in $87 billion a year in revenue and encourage workers and employers to use cheaper insurance plans. Read more