On July 17, 2019, House passed H.R. 748, the Middle Class Health Benefits Tax Repeal Act, to repeal the “Cadillac Tax”. The bill passed by a nearly unanimous vote in favor of repeal.
What is the Cadillac Tax?
The Cadillac Tax was originally passed in the Affordable Care Act as a cost-containment measure. It would have penalized or taxed employer-sponsored plans, which exceeded a set cost / benefit threshold. The Cadillac Tax was originally set to go into affect in 2018 but was delayed numerous times. Not withstanding the passage of this bill, it is currently scheduled to go into effect in 2022.
What does H.R. 748 propose?
H.R. 748 would permanently repeal the Cadillac Tax. Unlike prior legislative action which simply delayed the implementation, H.R. 748 would eliminate the Cadillac Tax.
What is the next step?
With the passage in the House complete, repeal of the Cadillac Tax is in the Senate’s court. The Senate is anticipated to take up the bill. The Senate companion bill, S.684, introduced in March by Sens. Martin Heinrich, D-N.M., and Mike Rounds, R-S.D., currently has 42 co-sponsors.
Watch for updates regarding Cadillac Tax Repeal!