Is it possible that the Cadillac Tax will be a major health spending cost ‘deflator’?
Removing all of the inaccurate coverage, charged language and complicated terminology thrown around surrounding this topic, the simple issue is the tax the Patient Protection and Affordable Care Act (PPACA) places on health insurers and who is really paying that cost.
To many, taxing insurance companies may have sounded like a great idea. However, bi-partisan groups were opposed to this idea because the increased cost to the insurance companies would likely trickle to consumers (employers and individuals) in the form of increased premiums.
The contention is that this tax is a massive source of revenue for PPACA but it comes at the cost of higher insurance premiums. Some individuals have been shielded from this cost because they are receiving premium subsidies to help pay for their medical insurance. However, the underlying medical insurance premium is higher and being absorbed by tax payers.
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