Repeal of “Cadillac Tax” Reintroduced

PIA National has long sought to prevent this tax from ever being implemented.
Repeal of “Cadillac Tax” Reintroduced
February 4, 2019

A bill to repeal the 40 percent excise tax on so-called “overly generous” employer-sponsored health coverage, known as the “Cadillac Tax,” has been reintroduced in the U.S. House. On January 24, Reps. Joe Courtney (D-CT), Mike Kelly (R-PA), Suzan DelBene (D-WA), and Elise Stefanik (R-NY) reintroduced the bipartisan Middle Class Health Benefits Repeal Act of 2019 (H.R. 748).

PIA National has long sought to prevent this tax from ever being implemented, successfully advocating to delay it from taking effect twice. Even though the tax will not take effect until 2022, its very existence continues to create instability in the health insurance market while putting consumers’ health care at risk.

Critics of the Cadillac tax believe it was put into the ACA as a means of dismantling the employer-based system of healthcare, in favor of government-sponsored insurance programs—like the ACA. PIA National opposes the tax because it will severely damage the employer-sponsored health system and consumers. This bill will be one of PIA’s top priorities at the 2019 PIA Federal Legislative Summit April 2-4 in Washington, D.C. [Deep dive at the PIA Advocacy Blog].


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