Assignment 4: Cost Sharing and Health Insurance

AHLT-H350

1. Reference the article "If you want less of something tax it: "The battle over the Cadillac Tax" I had previous provided to you"Links to an external site.. The argument has been made that the tax exclusion currently provided to employers on the insurance benefit employers give to employees reduces cost sharing thus the need for the Cadillac tax. The Cadillac tax is progressive. Explain what this means to someone who is rich rather than poor. The article I had provided to you also discusses the fact that the tax adjusts for inflation but healthcare costs rise faster than inflation. What will this mean for the rich and the poor in the future?