Cadillac Designed as a way toboth fund future health care costs and encourage employers to moveto more cost-conscious health insurance coverage, the Cadillac taxhas been opposed by a wide range of stakeholders. (Photo:Shutterstock)

As the U.S. House of Representative was poised to vote on arepeal of the “Cadillac Tax” for health care plans, a new studyshows that one in five employers may have to pay the tax if it goesinto effect on schedule in 2022.

The Cadillac Tax has long been one of the most controversial andleast popular elements of the Affordable Care Act (ACA). Designedas a way to both fund future health care costs to the ACA andencourage employers to move to more efficient and cost-conscioushealth insurance coverage, the Cadillac Tax has been opposed by awide range of stakeholders, including employers, unions, andinsurance plans. Implementation of the tax has been delayed twiceby Congress, and the House is scheduled to vote on an outrightappeal on Wednesday.

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