If people actually like it, tax it out of existence.
You have often heard conservatives talk about how ObamaCare has made health insurance in this country worse, and that’s true. But did you know that in the case of many people, that was the idea?
It will not take effect until 2018, but one of the least reported-on aspects of ObamaCare is the so-called Cadillac Tax, which penalizes employers who provide their employees with health insurance that is too good. And even though the implantation of the tax is more than three years away, it’s already having an effect – and if you’re one of those whose insurance is being impacted, you won’t like it one bit.
Knowing that the Cadillac Tax is on the horizon, large employers are already shifting their employees to what they call consumer-directed health care plans. These do not provide anywhere near the generous benefits employees have been used to, and that was exactly what Democrats had in mind when they drafted ObamaCare and decided to include the Cadillac Tax.
Why would they do that? Think back to the arguments they offered when they were first pushing ObamaCare. They claimed that what they were going to do was “bend the cost curve,” which was a clunky way of saying they would find a way to reduce overall spending on health care. They claimed this would be accomplished largely by getting more people to use preventive care and discouraging inappropriate use of emergency rooms while managing to prevent more serious conditions.
That sounded good to a lot of people, although obviously not enough for Democrats’ purposes because a majority of Americans hated ObamaCare then just as they hate it now.
But it was never as plausible as the claimed. In order to really reduce the cost of health insurance, they had to reduce the value people would receive for their premium dollars. One way they did this was to narrow the networks of health care providers people could access. Another way was to punish employers who offered health insurance that was too good.
Businesses are not stupid, and they understand that if they don’t make their health insurance offerings less generous, they will get bitten hard by the Cadillac Tax. By the way, the only reason the Cadillac Tax is pushed back as long as it is was because of pressure from the Democrats’ friends in organized labor. That should tell you something. The unions understand that employees are going to pay a price for ObamaCare as well. In recent months, unions have become even more angry about what they discovered were the real impacts of ObamaCare, but the early pressure they applied for the delay of the Cadillac Tax tells you they knew even in 2009 that it would not be all good for workers.
So why would Democrats put such a harmful mechanism into ObamaCare? You might think it’s because Democrats never met a tax they didn’t like, but in fact they really don’t want to collect any revenue from the Cadillac Tax. What they really want is for everyone’s health insurance in this country to be just like everyone else’s. It’s classic Democrat thinking. In order to achieve “equality,” some people have to be made worse off. So if you’ve got something good, the Democrats will tax your employer as punishment unless that something good is taken away from you.
ObamaCare was never about “affordable care.” It was always about government control of health care, and the Cadillac Tax is a perfect example to prove it. If the goal was for people to have good insurance, they wouldn’t put in place an incentive to take good insurance away. That was never the goal. It was always to make everyone’s health insurance what Democrats think it should be – equally substandard for all.
Hopefully ObamaCare will completely implode before too many more people lose their good quality benefits as a result of it.