The Pioneer Institute on the “Cadillac Tax” that will hit Massachusetts residents

Full brief is here.

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.

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Filed under Individual Mandate, MA Health Care, ObamaCare

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