“I encourage Congress to repeal the so-called Cadillac Tax”, the Democratic presidential candidate said in a statement.
Clinton has been under mounting pressure to oppose the tax or risk losing big-dollar union support to her 2016 Democratic rivals; Sen. Bernie Sanders introduced a bill last week to repeal the provision.
She said other reforms to the Affordable Care Act she has proposed would “more than cover the cost” of repealing the tax and helping to reign in rising prescription drug costs.
The tax, which takes effect in 2018, is opposed by unions, which caution it would raise health costs on their members. The tax is imposed on employers, who can keep away from it by decreasing advantages to their staff. Its goal is to assist rein in health care prices over all.
Clinton hinted earlier this summer that she was weighing a repeal of the excise tax “as now structured”, which would charge companies if their benefits exceed $10,200 for an individual or $27,500 for a family.
“At the end of the day this tax is created to cut the use of health care”, O’Brien said, adding that one of the more “disturbing” aspects of the tax was the idea that people need to have higher deductibles and pay more out of pocket costs.
“What that means is the tax that starts out hitting only 8% of the insurance plans essentially amounts over the next 20 years essentially getting rid of the exclusion for employer sponsored plans”, Gruber said during his speech.
A recent analysis from the nonpartisan Kaiser Family Foundation estimated that 26 percent of all employers would face the tax in at least one of their plans during its first year.
But Clinton said families with health coverage are already struggling to pay their out-of-pocket costs. It is levied on insurers and health plan administrators, who are expected to pass it back to employers.
Supporters of the tax, including the Obama administration, argue that it will also help lower health care spending.
Opposing the tax will put her at odds with most ObamaCare backers, though it could also unlock important endorsements from the country’s largest unions.