Following House Passage, Heinrich and Rounds Urge Swift Senate Action to Permanently Repeal Cadillac Tax

The senators introduced legislation to permanently repeal the Cadillac Tax earlier this year

WASHINGTON, D.C. —U.S. Senators Martin Heinrich (D-N.M.) and Mike Rounds (R-S.D.), the bipartisan leads of Senate legislation to permanently repeal the ‘Cadillac Tax,’ today applauded the House of Representatives’ passage of the measure. They also called on the Senate to quickly take up their bill so it can be signed into law.

“Eliminating this onerous tax on employees' health coverage will protect important benefits for workers and ensure that businesses and families get a fair deal,” said Heinrich. “I look forward to working with Senate Leadership and my colleagues to ensure millions of middle-class families who rely on employer-based health care aren't unfairly penalized by this tax.”

“I’m pleased the House voted to permanently repeal the ‘Cadillac Tax’,” said Rounds.“Too many families are already suffering under Obamacare, and unless we repeal the Cadillac Tax, thousands of South Dakotans who get their health care from work are in jeopardy of losing the plans they currently enjoy. If implemented, the Cadillac Tax would impose a 40 percent tax on certain employer-sponsored health care plans. This would dramatically increase the costs of healthcare for South Dakota families. The Cadillac Tax repeal bill that Sen. Martin Heinrich (D-N.M.) and I introduced earlier this year has strong bipartisan support in the Senate. I urge the Senate to quickly pass our bill and get it to the president’s desk so we can permanently repeal this ill-advised tax on middle class families.”

Earlier this year, Heinrich and Rounds introduced the Middle Class Health Benefits Tax Repeal Act of 2019, which would repeal the Cadillac Tax provision of the Affordable Care Act. The 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. Implementation of the Cadillac Tax has been delayed numerous times, but if it isn’t repealed, it’s scheduled to take effect in 2022.

U.S. Representatives Joe Courtney (D-Conn.) and Mike Kelly (R-Penn.) introduced the Cadillac Tax repeal bill in the House of Representatives, and today the House voted to pass their legislation. Both the Senate and House bills have bipartisan support.