No More Cadillac Tax!

House lawmakers overwhelmingly passed legislation to repeal the Cadillac tax, the Affordable Care Act's tax on high-cost health plans 419-6

What is the Cadillac Tax?

The Cadillac Tax, which was part of the Affordable Care Act law,  would require plan sponsors and insurers to pay a 40% excise tax on the excess cost of employer-sponsored health coverage for employees — amounts over $11,100 for employee-only and $29,750 for family coverage, adjusted for inflation annually.

The Cadillac Tax will be repealed effective in the 2022 tax year. H.R. 748, titled the Middle Class Health Benefits Tax Repeal Act, received bipartisan support for killing the excise tax, as industry groups and labor unions have become vocal in its repeal over the years since the healthcare law’s passage.

The Tax was designed as a disincentive to encourage self-funded and fully-insured employers to spend less per employee and employee + dependents. It caused employees to pay more out-of-pocket. 

An analysis of the so-called Cadillac tax by The Kaiser Family Foundation, concluded that 21% of employers offering health benefit plans would be affected by the tax when it went into effect in 2022 — and the number of employers would increase to 37% by 2030.

At, we interviewed Maria Todd, author of the forthcoming Employer’s Guide to Medical Tourism Benefit Design, who stated that she always felt this flawed tax was supported by logic that was misguided. “ERISA already has rules built in that cause plan fiduciaries to conserve trust dollars and also decide on services and benefits that put the interests of plan participants as the focal point of decision-making. An excise tax of this nature and magnitude risked punishing employers for doing their level best by employees to arrange high-quality care that might cost more than mediocre care.” Now all that’s left is for the Senate to sign off.  

No More Cadillac Tax!
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No More Cadillac Tax!
House lawmakers overwhelmingly passed legislation to repeal the Cadillac tax, the Affordable Care Act's tax on high-cost health plans 419-6 has suspended most operations due to COVID19 travel restrictions and our participating health facilities' limitations to accommodate all but essential and urgent cases. We'll resume service based on our re-assessment scheduled for May 1, 2020.

In this ‘time out” period, we’ll be doing some website overhaul, and working on adding new provider listings, and other “rainy day” tasks that can be accomplished by team members working from home.

If you’d like to plan or inquire about a procedure upon our resumption of services, our telephones are still fully staffed around the clock utilizing our quality assurance backup contingencies, so call anytime. 

TIP: If you know you need to plan an elective surgery or shop prices, get started ASAP. Once hospitals and outpatient surgery centers resume normal operations and replenish supplies in high demand, elective scheduled surgery will be overwhelmed. In the event of price increases, lock in your price quotes, reserve your surgery and consultation appointments, and arrange any needed financing for summer surgeries as soon as you are ready.

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