House votes on “Cadillac tax”

July 27, 2019

The U.S. House of Representatives has passed a bill that would repeal the 40% “Cadillac tax” on high-cost health insurance plans provided by employers.

Before the vote was taken, members of both parties said on the House floor that repealing the tax would help improve affordability, since employers have shifted to high-deductible health plans to avoid the levy. Due to heavy lobbying by employers and unions, the Cadillac tax has not yet been implemented, but is scheduled to take effect in 2022.

The Senate will need to take up the bill next and that may happen in 2020, per Senate Finance Committee Chairman Charles E. Grassley. Read more about it here.

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