U.S. House Votes to Repeal Affordable Care Act’s Destructive ‘Cadillac Tax’

From PA Chamber of Business & Industry

Last week, the U.S. House of Representatives voted in an overwhelming 419-6 vote in favor of the Middle Class Health Benefits Tax Repeal Act of 2019.  Supported by the PA Chamber and a broad-based nationwide coalition, the bipartisan legislation aims to repeal an impending 40 percent tax on employer-provided health care.  Dubbed the “Cadillac Tax,” this component of the Affordable Care Act has been delayed by Congress twice; however, the policy has contributed to deductibles increasing 89 percent while wage growth has remained comparatively flat.

In early June, the PA Chamber was among the signatories on a letter to Congress urging support for the bill, largely due to its impact on the nation’s middle class population.  “While this tax was intended to only hit Americans with ‘gold-plated’ plans, the reality is that very modest plans covering low-and moderate-income working families are projected to trigger the tax,” the national coalition of business, chamber and insurance groups wrote. 

The legislation, HR 748, now awaits consideration in the U.S. Senate.