Pension & Benefits News House approves bipartisan repeal of ACA’s Cadillac tax
Wednesday, July 31, 2019

House approves bipartisan repeal of ACA’s Cadillac tax

By Pension and Benefits Editorial Staff

The House has approved a bipartisan repeal of the Affordable Care Act’s (ACA) so-called Cadillac excise tax on certain high-cost insurance plans.

The Middle Class Health Benefits Tax Repeal Bill (HR 748) cleared the House on the evening of July 17 by a 419-to-6 vote. The bipartisan bill would repeal the 40 percent excise tax under the ACA known as the "Cadillac tax" on certain high-cost employer-sponsored health care plans.

Congress has repeatedly delayed the ACA’s Cadillac tax, which is currently set to go into effect in 2022. However, HR 748 would fully repeal the tax.

Although the measure has bipartisan support in the Senate, as for when it will get its legs in the upper chamber remains to be seen. Lately, Senate Majority Leader Mitch McConnell, R-KY., has been viewed on Capitol Hill as focusing more on moving nominations than considering tax bills.

Industry reaction. Groups opposed to the tax applauded the House vote. Matt Eyles, president and CEO of America’s Health Insurance Plans (AHIP), said in a statement that the “bipartisan solution will help lower deductibles, improve health care access and make coverage more affordable for hundreds of millions of hardworking Americans."

The National Business Group on Health echoed that sentiment.

“The House action to repeal the Cadillac tax is welcome news for both employers and employees. It’s been our steadfast position that Congress should eliminate the excise tax. Any tax that raises the cost of health benefits will harm the millions of working Americans and their families who rely on and value employer-sponsored health coverage,” said Brian Marcotte, President and CEO of the National Business Group on Health.

“Rather than focus on demand-side taxes, particularly this flawed tax, that will raise costs for working Americans and their employers, we believe Congress should focus on reducing supply-side drivers of medical inflation and unnecessary costs,” he added.

Steve Wojcik, Vice President, Public Policy at the National Business Group on Health, added, “There is widespread, bipartisan support to repeal this tax, and we strongly urge the Senate to also take action to eliminate this highly unpopular tax.”

Back to Top

Interested in submitting an article?

Submit your information to us today!

Learn More