Insures applaud end of Cadillac tax

By | July 19, 2019

The House on Wednesday overwhelmingly voted to repeal the Cadillac Tax that was put in place under the Affordable Care Act to discourage the purchase of high-end health plans.

In a bipartisan vote of 419-6, House members approved the Middle Class Benefits Tax Repeal Act, H.R. 748.


The Cadillac Tax imposed a 40 percent excise tax on employment-based insurance plans with premiums that exceeded thresholds set by law.

While the tax’s intent was to reduce healthcare costs, Matt Eyles, president and CEO of America’s Health Insurance Plans, said the tax would increase costs for consumers who have insurance through their employers.

The tax was enacted under the ACA in 2010 and was originally scheduled to take effect in 2018, but lawmakers delayed implementation until 2022.

The Congressional Budget Office estimates that ending the tax will increase federal deficits by $ 197 billion over the 2020-2029 period.


The Cadillac tax was seen at one time as motivation for employers to move health insurance benefits for their employees to the ACA marketplaces.

Twitter: @SusanJMorse
Email the writer:

News Feed

Read More:  J&J is said to mull buying robotic surgery firm Auris Health