As Josh Archambault explains, Massachusetts has very high premiums and health care costs. The “Cadillac tax” is the Scylla of ObamaCare: get too fancy a health care plan, pay a penalty. (The Charybdis element – get too basic a health care plan, like one that doesn’t cover contraception, and pay a fee – is more well-known.)
As Archambault explains, many middle-class families in the Commonwealth will pay this penalty:
For the 10 years following the introduction of the tax:
- Business employee on a family plan will owe $86,905 in additional taxes.
- Police officer on a family plan will owe $53,907 in additional taxes.
- Teacher on an individual plan will owe $20,807 in additional taxes.
I’m not a RomneyCare fan. We all know that. But RomneyCare at least helps Massachusetts remain as the mecca for the best medical care in the world. ObamaCare does the opposite: it reduces payments for Medicare (which accounts for 50% of hospital spending in Massachusetts), taxes health care plans that pay for MGH and Brigham & Women’s, and taxes medical devices at 2.5% of total sales.