Legislators Introduce Bill to Repeal ACA Cadillac Tax

U.S. Representative Mike Kelly, R-Pennsylvania—a member of the House Ways and Means Committee—introduced H.R. 173, the Middle Class Health Benefits Tax Repeal Act of 2017, which will repeal the so-called “Cadillac Tax” provision within the Patient Protection and Affordable Care Act (ACA).

The provision in the ACA would impose a 40% excise tax on all employer-provided health insurance plans valued at more than $10,200 for individual coverage and $27,500 for families.

“As our vice president, Mike Pence, reminded me and my colleagues this morning, we have a duty to fulfill our promise to the millions of Americans who are awaiting and demanding relief from Obamacare,” Kelly said in a statement. “As the new Congress and incoming administration begin the process of achieving real health care reform that actually lowers costs and is patient-centered, both Republicans and Democrats agree that this onerous tax should be repealed immediately. Doing so would mark a promising and productive start to the new year.”

H.R. 173 is co-sponsored by Representative Joe Courtney, D-Connecticut.

In a letter of support for the legislation, asserting that the Cadillac Tax “will hurt Americans in a very inconsistent and inequitable way,” American Benefits Council President James Klein says, “We are at a pivotal moment for health care reform, and now, more than ever, we need a stable employer-sponsored health coverage system. The ‘Cadillac Tax’ threatens the ability of employers to continue to provide high-quality health care coverage to their employees.”

With President Donald Trump’s “repeal and replace” agenda and the fact that The Consolidated Appropriations Act, 2016, included a two-year delay of the 40% excise tax on high-cost health plans, it remains to be seen if this action will move quickly through Congress.