Last year, Congress voted to delay the CadillacTax for two years. This year, more changes may be in store. This week, President Obama plans to retarget the Cadillac tax to take into account regional differences, as part of his budget proposal.
According to Jason Furman, Chairman of the White House Council of Economic Advisors, in an article published by the New England Journal of Medicine, the specific change is as follows:
“In any state where the average premium for “gold” coverage on the state’s individual health insurance marketplace would exceed the Cadillac-tax threshold under current law, the threshold would instead be set at the level of that average gold premium.”
In a press briefing last Thursday, responding to the backlash from the business interests that would be affected by the change, White House Press Secretary, Josh Earnest, pointed out that CBO statistics predict an increase in workers’ paychecks by $50 billion in 2026, and may reduce the government deficit by $100 billion due to the Cadillac Tax.