Cadillac tax: Is health insurance a luxury?

cadillac
cadillac

One of the most controversial pieces of the current health care reform bill is the introduction of the so-called "Cadillac tax" -- an excise tax on premium insurance plans that would be used to offset the estimated $940 billion price tag for health care reform.

The term "Cadillac tax" was coined after the idea was introduced as part of President Clinton's health care proposal in the 1990s. The tax targets high dollar insurance plans provided by employers that are thought to be a luxury when compared to most insurance plans.