An association representing more than 400 independent Connecticut insurance agencies says it supports a proposal by U.S. Rep. Joe Courtney and several fellow Democrats to repeal a 40 percent tax on higher-cost health plans.
Obamacare’s so-called “Cadillac tax” is set to take effect in 2018. Courtney and others argue that it will have disproportionate effect on areas with more expensive health premiums, such as Connecticut. The tax could also hit many union employee health plans.
The tax would be imposed on plans with annual benefits above $10,200 for individuals and $27,500 for family plans.
“The excise or ‘Cadillac’ tax will potentially cause an increase in health insurance costs for both employers and employees while also causing many employees to see a significant decrease in the quality of their health insurance coverage as employers are forced to reduce benefits to avoid this tax increase,” IIAC President Warren C. Ruppar said in a statement.
