Health Care “Cadillac Tax” Null and Void

The “Cadillac Tax” on health care plans has been repealed by Congress as part of the new SECURE Act.

The “Cadillac Tax” was part of the Affordable Care Act - it provided that for any plans costing over $27,500 per year (about $2300 per month), there would be a 40% (!) excise tax on all amounts over $27,500, as of 2022.

Because Union-negotiated health plans are some of the best in the nation, this meant that these  plans would have had to cut benefits or pay this exorbitant tax - the point of it was to reduce the cost of health care by putting a cap on how much plans could cost.

In part because of Labor’s battle to abolish the tax, joined in by the health care industry as a whole, Congress finally abolished it, effective January 1, 2020.

This is great news because it means Unions can continue to negotiate for so-called “Cadillac Plans” - the best plans available for working people - yet another reason to keep your Union strong.

For further information, contact your Union labor lawyers.

By: Bill Sokol | December 23, 2019

Legal Developments