The U.S. House of Representatives last week voted to repeal the “Cadillac tax” on high-cost, employer-provided health insurance.
The voting margin was 419-6.
The tax, unpopular among both Democrats and Republicans, would impose a 40% excise tax beginning in 2022 on employer-provided health plans that exceed $11,200 for an individual and $30,100 for a family.
The goal of the tax initially was to keep healthcare costs down and help pay for the Affordable Care Act, but even congressional Democrats now say the tax would primarily hurt working families that have health coverage through their jobs.
Repealing the tax will add to the growing national deficit. According to the nonpartisan Congressional Budget Office, it was estimated that its repeal would add $197 billion to the deficit over 10 years.
A Senate version of the bill has bipartisan support, but Senate Majority Leader Mitch McConnell has not yet said whether or when he will bring it up for a vote.
Reprinted from the July 25, 2019, issue of the Memorial Business Journal