With Cadillac Tax Postponed, There's Time to Consider Alternatives

With Congress voting to postpone implementation of the “Cadillac tax” until 2020, policymakers have ample time to decide if and how this controversial provision of the Affordable Care Act (ACA) should be altered. A new Commonwealth Fund issue brief explores how the Cadillac tax—a 40 percent excise tax on employer health insurance premiums in excess of $10,200 for individuals and $27,500 for families—will affect workers’ health insurance costs. The authors, RAND’s Christine Eibner and Sarah A. Nowak, also present alternative approaches.