House Votes to Repeal Cadillac Tax

On July 17, 2019, the US House of Representatives passed H.R. 748, which would repeal the 40% excise tax on employer-sponsored coverage that exceeds a certain threshold (also known as the Cadillac tax). As background, the Cadillac tax was introduced by the ACA, but has since been delayed through subsequent legislation.

The effort to repeal the law has clear bipartisan support, which was evidenced by the margin of the House vote; the measure passed on a 419-6 basis. The repeal is now expected to go on to the Senate, where there seems to be support for bypassing the committee process in favor of sending the repeal straight to a vote. This momentum may mean that the Cadillac tax repeal could be signed into law in the coming weeks.

The repeal of the Cadillac tax would be welcome relief for employers, considering the effect these taxes would have ultimately had on their plans. Bipartisan efforts for a full repeal of the Cadillac tax are likely to continue until the repeal is signed by the president. We will continue to monitor these developments and report on them here.

H.R. 748 »