U.S. Senate Expected to Repeal Obamacare 'Cadillac Tax'

The U.S. Senate this week is expected to follow the House's lead in repealing the so-called "Cadillac Tax" under Obamacare.

We're talking about a 40 percent tax on the cost of employer-provided coverage that exceeds $11,000 on individuals and nearly $30,000 for family coverage in 2022.

“This along with the health insurance tax and medical device tax are three of the most egregious Affordable Care Act taxes,” said Rep. Kevin Brady, R-The Woodlands.

“In fact, we ought to be getting rid of all three of those taxes. They're very damaging. They drive up health care costs. There's no need for them.”

The House voted 419-6 to repeal it. Even House Speaker Nancy Pelosi said repealing it would benefit union members.

The Kaiser Family Foundation expects about 1 in 5 employers offering health insurance would have at least one insurance plan subject to the tax in 2022.

“It's plans that may cover older employees, more women, cover people with larger families, cover people in areas of the country that have higher costs,” says Jim Klein, president of the American Benefits Council.

Klein says the 'Cadillac Tax' would especially impact those living in Houston.

“You have among the best hospitals in the world,” he says. “So sometimes the plan is more expensive because in the network of that plan is a hospital that has a great specialty for a very expensive disease that needs to be treated.”

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