Bipartisan legislation introduced by U.S. Rep. Mike Kelly (R-PA) would repeal the 40 percent excise tax on the Affordable Care Act’s high-cost employer-sponsored health plans, known as the “Cadillac tax.”
The Middle Class Health Benefits Tax Repeal Act, H.R. 173, would roll back the excise tax on employer-sponsored health plans totaling more than $10,200 for individuals or $27,500 for families. The Cadillac tax is currently scheduled to take effect in 2020.
“As President Obama comes to Capitol Hill to try to save his failed health care law, I am proud to take one of the first steps in repealing and replacing this law in order to save the American people from its harmful consequences,” Kelly said. “The widespread pain of Obamacare’s higher costs and broken promises is already being felt by countless families and workers, yet with the law’s looming Cadillac tax, in many ways the worst is yet to come.”
The Cadillac tax is a major reason why the ACA will make health care less affordable and accessible for many households across the country, Kelly added.
The tax will impact about 42 percent of American employers and their employees, according to an analysis by the Kaiser Family Foundation.
“Sensible health care policy should encourage employers to offer a full range of health plans to their associates, not punish them with an unfair tax for doing so,” Kelly said. “The sad result will be higher deductibles and fewer services for hardworking Americans. With most Pennsylvanians covered by employer-sponsored health insurance, this Obamacare tax will be a disaster felt especially close to home.”
Vice President-elect Mike Pence recently reminded lawmakers that they have a duty to fulfill their promise to millions of Americans who are awaiting relief from Obamacare.
“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actually lowers costs and is patient-centered, both Republicans and Democrats agree that this onerous tax should be repealed immediately,” Kelly concluded. “Doing so would mark a promising and productive start to the new year.”