U.S. House overwhelmingly approves legislation to fully repeal the Cadillac Tax

Key Takeaways

On July 17, the U.S. House of Representatives approved H.R. 748, the “Middle Class Health Benefits Tax Repeal Act of 2019”, on a bipartisan vote of 419 to 6. The legislation would repeal the 40 percent tax on high cost health plans, also referred to as the Cadillac Tax, which was originally included in the Patient Protection and Affordable Care Act (ACA) of 2010.

Repealing the Cadillac Tax has been a top priority for counties across the country since its inclusion in the ACA. Counties employ over 3.6 million workers and rely on health care coverage as one of the primary benefits we use to attract and maintain a quality workforce. Implementing this excise tax, which is currently set to go into effect in 2022, on employer-sponsored health insurance would significantly impact county budgets and workforce development.

In March, NACo joined over 500 organizations on a letter urging members of Congress to cosponsor legislation to fully repeal the excise tax. Companion legislation in the Senate (S.684) currently has 42 cosponsors supporting legislation to repeal the Cadillac Tax.

NACo applauds the efforts of the House to quickly pass legislation to repeal this harmful tax and will continue to work with our champions in the Senate to pass a full and permanent repeal of the Cadillac Tax.