Democratic presidential candidate Hillary Rodham Clinton said Tuesday that she opposes the Affordable Care Act's controversial “Cadillac tax” on high cost, employer-sponsored health insurance plans. She said its repeal would build upon the progress of the health reform law.
The much-maligned provision would impose a 40% excise tax on all employer-based plans with annual benefits exceeding $10,200 for individuals and $27,500 for families beginning in 2018.
Clinton says her plan to reduce high out-of-pocket costs from health plan deductibles as well as proposals to limit prescription drug prices will offset the loss of the $87 billion the Congressional Budget Office has projected will be generated from the tax from 2016 through 2025.
“Too many Americans are struggling to meet the cost of rising deductibles and drug prices,” Clinton said in a released statement. “That's why, among other steps, I encourage Congress to repeal the so-called Cadillac tax, which applies to some employer-based health plans, and to fully pay for the cost of repeal.”
The tax has been under scrutiny by employers and labor organizations, who have argued it will cause employers to reduce benefits.
Clinton's opposition to the tax comes as part of her platform on addressing healthcare costs.
Last week, Clinton laid out a proposal allowing Medicare to negotiate drug prices with pharmaceutical firms. It also would allow consumers to purchase cheaper medication in Canada and would place a monthly cap of $250 for out-of-pocket spending on prescriptions covered through private insurance.
Another plan Clinton unveiled last week would require health plans to fully cover three annual sick visits to a doctor, prohibit insurers from charging out-of-network rates for services received within a health network, and would provide a $5,000 refundable tax credit per family for out-of-pocket spending that exceeds 5% of annual income.
