One of the aspects of the Afford­able Care Act, which was sup­posed to occur in the dis­tant future (now the recent past of 2018), was the so called “Cadil­lac Tax,” which would tax those who had “rich” plans for the “excess” over a basic deter­mined lev­el – just 40%.

The rea­son for its enact­ment was to ensure that there was some fund­ing that would cov­er some of the antic­i­pat­ed deficits in the ACA.  Unfor­tu­nate­ly, no one real­ized how many peo­ple it would affect, as it was not adjust­ed for area (the Bay Area gen­er­al­ly runs above the lim­its, but Arkansas and more rur­al states do not), income, or oth­er area adjust­ed fac­tors.  Now the tax has been delayed twice, with the lat­est incar­na­tion set to appear in 2022.  Now new bills have been pro­posed to repeal it alto­geth­er, but with­out a replace­ment for the income loss it rep­re­sents.  We may see this in our rear view mir­ror soon…