Major insurers, pharmaceutical companies band together to fight 'Cadillac tax'

Several healthcare industry giants, including Blue Cross Blue Shield, Cigna and Pfizer, have launched a campaign aimed at fighting the Affordable Care Act's "Cadillac tax," according to The Hill.

Scheduled to take effect in 2018, the "Cadillac tax" is a 40 percent excise tax on high-cost health plans some employers provide their workers. It is meant to reduce overall healthcare costs by encouraging employers to offer cost-effective health benefits. The 40 percent tax applies to health plans that are worth more than $10,200 for individual coverage and $27,500 for family coverage, according to The Hill.

The American Benefits Council leads the newly launched campaign against the "Cadillac tax," called the Alliance to Fight the Forty. The group filed its lobbying registration Friday.

Although lobbying efforts against the tax have picked up since the Supreme Court issued its opinion in King v. Burwell, the Obama administration said it will not make changes to the ACA unless the change strengthens the law, according to the report.

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