Hillary Clinton backs PPACA Cadillac plan tax repeal

She said other changes she has proposed, such as new efforts to hold down the cost of prescription drugs, will lower overall health care costs enough to cover the cost of repealing the Cadillac plan tax.

Supporters of the tax have argued that it could be powerful health care cost control mechanism. The current unlimited group health premium tax exclusion encourages employers to offer health coverage, but it also encourages them to offer overly rich plans, and for the employers and their employees to ignore the true cost of health care, tax supporters say.

The excise tax could compensate for the effects of the tax exclusion, by giving large employers and their employees a financial incentive to do more to hold down the cost of care, the supporters say.

Large employers and unions have argued that the tax will be much more expensive for employers than PPACA drafters realized, and that the tax will be difficult for employers to implement.

See also: IRS sees PPACA Cadillac plan tax hot potato and PPACA Cadillac plan tax pie: Hard to slice?