12.10.19

Rounds, Colleagues Urge Congressional Leadership to Fully Repeal “Cadillac Tax”

WASHINGTON—U.S. Sens. Mike Rounds (R-S.D.) and Martin Heinrich (D-N.M.) and U.S. Reps. Joe Courtney (D-Conn.) and Mike Kelly (R-Penn.) wrote to House and Senate leadership urging swift action of their legislation to repeal the “Cadillac Tax,” a tax on high premium employer-sponsored health insurance. Legislation repealing the tax passed the House of Representatives overwhelmingly earlier this year. Identical legislation, introduced by Sens. Rounds and Heinrich (S. 684), has 63 bipartisan cosponsors in the Senate.

 

In their bipartisan, bicameral letter, the Members wrote:

 

“The status quo creates uncertainty as employers, and employee representatives negotiate benefits packages that extend well into 2022, when the tax is currently set to go into effect. A fourth delay is not a viable option. The ongoing uncertainty is already threatening the quality of employer sponsored health insurance. The time is now to act in the best interest of the American people and repeal the Cadillac Tax.”

 

Last week, more than 1,000 employers and stakeholders sent a similar letter, underscoring the breadth of support for repeal.

 

Full text of their letter:

 

We write regarding the urgent need to fully repeal the 40 percent excise tax on higher premium employer-provided health plans, commonly referred to as the Cadillac Tax. Failure to act will result in higher-deductibles and loss of coverage for American workers and their families.

 

Our legislation, the Middle-Class Health Benefits Tax Repeal Act of 2019, (S. 684/ H.R. 748) has 63 bipartisan cosponsors in the Senate and passed the House with an overwhelming bipartisan vote of 419 to 6 in July.

 

The House vote, Senate support, and three implementation delays enacted by prior Congresses reflects an overwhelming consensus that the Cadillac Tax should be fully repealed. This punitive tax, if allowed to take effect, will raise health insurance costs for working Americans.

 

The status quo creates uncertainty as employers and employee representatives negotiate benefits packages that extend well into 2022, when the tax is currently set to go into effect. A fourth delay is not a viable option. The ongoing uncertainty is already threatening the quality of employer sponsored health insurance. The time is now to act in the best interest of the American people and repeal the Cadillac Tax.

 

According to polling by Fox News, Kaiser Health and Gallup, health care remains a top concern for American families. The American public demands that Congress act to address the growing crisis of health care affordability. Repealing the 40 percent tax has wide bipartisan support and is a worthwhile first step. Postponing repeal is no longer an option.

 

We look forward to working with you to secure lasting relief for America’s working families. Thank you for your consideration of this request.

 

Sincerely,

 

 

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