Cadillac Tax Is Back?

The original ACA law included a poison pill. Once premiums hit a certain level - which they hit a few years back - employers and employees were to lose the tax-free status. The biggest tax-deduction in the country was going to disappear. Many speculated that was to be the end of employer based health insurance. What employers would spend taxable dollars on an item that employees could buy on their own. Like car insurance or renters insurance.

That feature was removed later, along with the individual mandate. But it’s back. A recent bill proposes it.

What would you do if health insurance premiums were not tax deductible?