Man looking concerned

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Health Reform WK-EDGE, February 8, 2019

Bipartisan bill reintroduced to repeal Cadillac tax

By Lauren Bikoff, MLS

Repeal of the Cadillac tax has been a popular legislative topic, even as the implementation of the tax has been delayed several times.

On January 24, Reps. Joe Courtney (D-Conn) and Mike Kelly (R-Pa) reintroduced H.R. 748, the Middle Class Health Benefits Tax Repeal Act, which would repeal the excise tax on high-cost health care plans, otherwise known as the "Cadillac tax." Repeal of the Cadillac tax has broad bipartisan support in Congress, the legislators noted. In the previous Congressional session, over 300 members in the House of Representatives cosponsored repeal legislation.

The Patient Protection and Affordable Care Act (ACA) requires plan sponsors and insurers to pay a 40 percent excise tax on the excess cost of employer-sponsored health coverage for employees—amounts over $11,100 for employee-only and $29,750 for family coverage, adjusted for inflation annually. The tax has been delayed several times, most recently to 2022.

"The American people have made it clear that they want Congress to address the rising cost of health care. Out of pocket costs are unaffordable for growing numbers of families, even those who have insurance. If the 40 percent excise tax goes into effect, we know this affordability crisis will dramatically worsen," said Courtney. "Actuarial experts have repeatedly warned that this tax will disproportionately and unfairly impact older workers, women, and working families in expensive geographic areas."

The legislation is supported by several organizations, including the American Benefits Council and the AFL-CIO. "Employers provide health coverage to more than 180 million Americans. We applaud the strong bipartisan support to repeal the Cadillac tax and commend Congressman Joe Courtney for sounding the alarm—even before the tax was enacted—about the burden it will place on working families and employers," said James A. Klein, American Benefits Council president. "The tax hits plans that are not ‘overly generous’ but, rather, are expensive for reasons beyond the control of employers and families who need coverage to protect themselves from financial ruin."

MainStory: TopStory AgencyNews CadillacTaxNews GroupMarketReformNews

Back to Top

Health Reform / WK-EDGE

Introducing Wolters Kluwer WK-EDGE — created by attorneys, for attorneys — providing timely coverage of breaking news, court decisions, legislation, and regulatory activity.

A complete weekly report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your weekly email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.