- Congress will vote tomorrow on the repeal of a provision of the Affordable Care Act known as the "Cadillac Tax" which would place a 40% levy on employer-sponsored healthcare plans that provide excess benefits (about $11,200 for individuals and $30,150 for families in 2022).
- Opponents of the tax, including insurance industry advocates and certain think tanks, successfully delayed implementation until 2023, mainly because the thresholds are too low and would make insurance much more expensive for older and sicker Americans.
- Nevertheless, health insurers have been preparing for implementation and have seen higher deductibles on their policies as a result.
- Repeal has bipartisan support so it could happen.
- Selected tickers: UnitedHealth Group (UNH -0.2%), Cigna (CI +1.7%), CVS Health (CVS -0.1%), Centene (CNC -0.2%), Humana (HUM -0.3%), Anthem (ANTM -0.3%), eHealth (EHTH -1.7%), Health Insurance Innovations (HIIQ -1.1%)
- Update: The House voted 419-6 in favor of repeal.