Clinton to call for nixing ‘Cadillac Tax’ on health plans under Obamacare

The tax, part of President Barack Obama’s health-care law, is a levy on premium health-insurance plans and is due to take effect in 2018.

LIUNA members and their families thank Secretary Clinton for opposing this unfair tax that harms middle class workers who have fought and bled for good wages and benefits, only to see them put at risk by a short-sighted proposal in the Affordable Care Act.

Mrs. Clintons move could help draw support for her campaign from other unions that have been holding off making an endorsement, in part because of support among organized labors rank-and-file for Senator Bernie Sanders, the independent from Vermont.

Clinton’s campaign said the estimated billion in lost revenue from repeal of the Cadillac Tax would be offset by her reform plans released last week.

Lately, the center of gravity in the Democratic Party has moved against the tax, which is also aimed at keeping down overall health care spending.

She had indicated skepticism about the Cadillac tax and said she was examining possible changes.

Clinton’s top rival for the Democratic presidential nomination, Sen.

The Obama administration says critics overstate the potential impact of the tax.

The expectation is that, at least to a few extent, insurers will be motivated to craft policies that avoid the tax, develop innovations to reduce health care costs, and drive harder bargains with providers. That should encourage lower utilization and/or lower prices too.

“My proposed reforms to our health care system would more than cover the cost of repealing the Cadillac Tax, while also reining in skyrocketing prescription drug costs and out-of-pocket expenses for hard-working families”. Instead of preventing unnecessary treatments, “what you really end up doing is hurting people with chronic conditions”. Since health care costs have historically increased at a faster rate than inflation, all employer-sponsored plans would eventually be taxes.

The poll from the Kaiser Family Foundation, which does nonpartisan healthcare analysis, finds that 60 percent of the public opposes the tax and 28 percent favor it. That number would rise to 42 percent by 2028.