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

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

The Cadillac Tax has long been one of the most controversial and least popular elements of the Affordable Care Act (ACA). Designed as a way to both fund future health care costs to the ACA and encourage employers to move to more efficient and cost-conscious health insurance coverage, the Cadillac Tax has been opposed by a wide range of stakeholders, including employers, unions, and insurance plans. Implementation of the tax has been delayed twice by Congress, and the House is scheduled to vote on an outright appeal on Wednesday.

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