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Stevens-Backed Legislation to Repeal the ‘Cadillac Tax’ Passes House

July 18, 2019

WASHINGTONOn Wednesday, the U.S. House of Representatives passed bipartisan legislation to repeal a 40% excise tax on certain employer sponsored health insurance plans known as the “Cadillac Tax”.

The so-called “Cadillac Tax” would impact employers and families whose health insurance plans cost more than $11,100 for an individual, and $29,750 for family coverage. Although the tax was originally a provision in the Affordable Care Act, implementation has been delayed numerous times by bipartisan coalitions in Congress, most recently until 2022.

The Middle Class Health Benefits Tax Repeal Act (H.R. 748) would repeal Section 4980I of Chapter 43 of the Internal Revenue Code, the excise tax on high-cost health plans, and make conforming and clerical changes in tax code to reflect repeal of this section. The bill has more than 350 bipartisan co-sponsors in the U.S. House of Representatives, and has the support of a broad coalition of patient advocates, business groups, and labor unions.

“Families in southeast Michigan are already paying too much for their health insurance, and a 40% tax on certain insurance plans will make matters much worse,” said Congresswoman Stevens. “If the Cadillac Tax goes into effect, workers will see reduced health benefits, rising out-of-pocket costs, or both. The Middle Class Health Benefits Tax Repeal Act is an important part of our agenda to bring down the cost of healthcare by strengthening and protecting the Affordable Care Act. With such a broad, bipartisan coalition in support of this bill, I urge Senator McConnell to bring this legislation to a vote so we can stop the Cadillac Tax from hurting Michigan families.”

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