Clinton opposes ObamaCare Cadillac Tax

Former Secretary of State Hillary Clinton broke from the Obama administration this week in declaring her opposition to ObamaCare’s “Cadillac Tax” on high-end healthcare plans.

“Too many Americans are struggling to meet the cost of rising deductibles and drug prices. That’s why, among other steps, I encourage Congress to repeal the so-called Cadillac Tax, which applies to some employer-based health plans, and to fully pay for the cost of repeal,” Clinton wrote in a statement Tuesday.

{mosads}Opposing the tax will put her at odds with most ObamaCare backers, though it could also unlock important endorsements from the country’s largest unions. The tax, which goes into effect during the next president’s tenure, specifically targets expensive health plans, making it a top issue for union groups, which typically give members generous benefits.

Clinton has been under mounting pressure to oppose the tax or risk losing big-dollar union support to her 2016 Democratic rivals; Sen. Bernie Sanders (I-Vt.) and former Maryland Gov. Martin O’Malley have both come out against it.

Clinton hinted earlier this summer that she was weighing a repeal of the excise tax “as currently structured,” which would charge companies if their benefits exceed $10,200 for an individual or $27,500 for a family.

The controversial tax, which has been repeatedly delayed, is still three years away from implementation. It has drawn opposition from union groups and Democrats in areas such as New England and the West Coast, where health insurance costs are higher.

Sanders announced last week that he was reintroducing legislation to repeal the tax, though that bill looks unlikely to receive a signature from President Obama, who has warned of the $87 billion budget hole that would result from repeal.

Clinton’s plans to oppose the tax were first reported by The New York Times.

—Updated at 5:06 p.m.