News Headlines Article

Why the ‘Cadillac Tax’ is such a tough pill to swallow

Everyone loves to talk about how Americans are spending too much on healthcare. And there’s a provision in Obamacare — often called the Cadillac Tax — that’s designed to at least help slow down this spending habit by taxing high-priced health insurance plans.

But word from Washington is lawmakers on both sides of the aisle are looking at ways to delay the provision — which is slated to take effect in 2018.

At its most basic, the Cadillac Tax penalizes health plans that exceed $10,200 for an individual, or $27,500 for a family. Why penalize with those plans? Boston University economist Austin Frakt said you can think of them like a buffet.