Delay in Cadillac tax possible 

Word is that talks are underway for a two-year delay in the 40% so-called Cadillac tax on high value health plans. 

Reportedly the deal under discussion would also delay the medical device tax and provide additional funding for the “risk corridors” under the Affordable Care Act (ACA) that provide payments to health plans experiencing high claims because of adverse selection.

Nothing is certain yet and it’s not clear how all this will be paid for, but it’s another indication of the ongoing tweaks, delays and simply ignoring some provisions of the law that appear necessary to keep it afloat. 


  1. Where does this “word” come from? I’ve certainly heard that the Obama administration is willing to consider changes, in addition to obvious support for adjustment/repeal from both houses on Congress and on both sides of the aisle.


    1. Committees in Congress are meeting to make this happen. It is not clear how involved the Administration is at this point. There is support on both sides and among unions as well.


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