Senate Should Consider ‘Cadillac’ Tax Repeal Bill, Lawmakers Say

July 25, 2019

The Honorable Mitch McConnell
Majority Leader
United States Senate
U.S. Capitol Building, Room S-230
Washington, DC 20510

The Honorable Charles Schumer
Minority Leader
United States Senate
U.S. Capitol Building, Room S-221
Washington, DC 20510

Dear Leader McConnell and Minority Leader Schumer:

We are writing today in support of the full repeal of the 40 percent excise tax on certain employer sponsored health insurance plans, commonly referred to as the Cadillac Tax. We urge Senate leadership to take up the recently passed House repeal legislation, H.R. 748, the Middle Class Health Benefits Tax Repeal Act of 2019, so that it may be considered by the full Senate.

As you know, the Affordable Care Act's Cadillac Tax applies to health plans that have a value that exceeds $11,000 for an individual and $29,750 for families. Although the tax will not go into effect until 2022, employers are already restructuring their health care benefits to avoid the tax, which includes reducing benefits and raising out-of-pocket costs. The negative impact this provision is having on American families is unacceptable.

There is strong support for repealing the Cadillac Tax on and off Capitol Hill. Between the House and Senate bills, we have gathered over 400 bipartisan cosponsors and more than 600 organizations across the country have voiced support for the repeal of this burdensome tax. We are thrilled that the House passed the Middle Class Health Benefits Tax Repeal Act on July 17, 2019, by an overwhelming vote of 419 to 6 and believe that the Senate should bring up repeal for a vote before the end of this year.

At a time when health care expenses continue to go up, and Congress remains divided on many issues, the repeal of the Cadillac Tax is something that has true bipartisan support. As leaders in the effort to repeal this onerous tax, we urge you to work with us in finally passing this bill that will benefit hardworking Americans across the country. Thank you for your consideration of our request.

Sincerely,

Martin Heinrich
United States Senator

M. Michael Rounds
United States Senator