Lawmakers Urge Repeal of ‘Cadillac Tax’ in Upcoming Legislation

November 21, 2017

The Honorable Paul Ryan
Speaker of the House of Representatives
H-223, The Capitol
Washington, D.C. 20515

The Honorable Nancy Pelosi
House Minority Leader
H-204, The Capitol
Washington, D.C. 20515

Dear Speaker Ryan and Leader Pelosi:

As Members committed to ensuring high-quality health care benefits for working Americans, we write to request immediate action on the excise tax on certain employer-sponsored health plans included as part of the Affordable Care Act (ACA). It is our understanding that legislation being crafted to address many outstanding health care issues before the end of the year includes a number of provisions to address health-related tax policy. We strongly believe that action to repeal or delay the so-called “Cadillac Tax” should be included in this and any related package given the very real consequences of the tax already being experienced today by U.S. workers.

While Congress has already delayed implementation of this excise tax until 2020, the policy is already having an impact. Large employers and labor unions are currently negotiating benefits packages that stretch into 2020, with many employers reporting that they are considering reducing the value of their health benefits to avoid this excise tax. We cannot wait to repeal it.

While some claim that this tax was intended to hit only the most generous “Cadillac” plans, that notion is mistaken since millions of hardworking Americans and their families face a significant reduction of their benefits with an increase in their cost-sharing should as a result of this tax. In reality, the tax unfairly and disproportionately affects middle-income Americans, women, and their families. Moreover, older workers and small businesses would also be heavily impacted.

A survey by the American Health Policy Institute found that 31 percent of large employers would have a health care plan subject to the tax by the first year of implementation, and 42 percent would have a plan subject to the tax by the second year. If this tax is not repealed, the out-of-pocket costs for Americans with employer-sponsored health insurance will rise at their expense.

The 40 percent excise tax has been widely opposed by both Democrats and Republicans along with a wide coalition of business, health, and labor organizations. More than 200 members of the U.S. House of Representatives have cosponsored legislation to repeal this burdensome tax. We, therefore, urge you to address the Cadillac Tax in any health or tax-related legislation that comes before Congress for a vote this year.

Sincerely,

Joe Courtney
Member of Congress

Mike Kelly
Member of Congress

Bob Gibbs
Member of Congress

Dina Titus
Member of Congress

John B. Larson
Member of Congress

Randy Weber
Member of Congress

Suzan K. DelBene
Member of Congress

Matt Cartwright
Member of Congress

Joseph Crowley
Member of Congress

Lois Frankel
Member of Congress

Dwight Evans
Member of Congress

Rod Blum
Member of Congress

Debbie Wasserman Schultz
Member of Congress

David Joyce
Member of Congress

Tim Ryan
Member of Congress

Brendan F. Boyle
Member of Congress

Ruben Gallego
Member of Congress

Paul Cook
Member of Congress

Pete Aguilar
Member of Congress

Bill Foster
Member of Congress

Luke Messer
Member of Congress

Grace Meng
Member of Congress

Seth Moulton
Member of Congress

Ed Perlmutter
Member of Congress

Mark Pocan
Member of Congress

Brad Schneider
Member of Congress

Frederica Wilson
Member of Congress

Mark Takano
Member of Congress

Tony Cárdenas
Member of Congress

Raúl Grijalva
Member of Congress

Carol Shea-Porter
Member of Congress

Donald Norcross
Member of Congress

Bonnie Watson Coleman
Member of Congress

Juan Vargas
Member of Congress

John Katko
Member of Congress

Adriano Espaillat
Member of Congress

Norma J. Torres
Member of Congress

Kyrsten Sinema
Member of Congress

Vincente Gonzalez
Member of Congress

Tom O'Halleran
Member of Congress

Eric Swalwell
Member of Congress

Salud O. Carbajal
Member of Congress

Elizabeth H. Esty
Member of Congress

David Scott
Member of Congress

Val Demings
Member of Congress

Peter T. King
Member of Congress

John Yarmuth
Member of Congress

Michelle Lujan Grisham
Member of Congress

Kathleen M. Rice
Member of Congress

Barbara Comstock
Member of Congress

Pramila Jayapal
Member of Congress

Jacky Rosen
Member of Congress

Jamie Raskin
Member of Congress

Colleen Hanabusa
Member of Congress

James P. McGovern
Member of Congress

Lucille Roybal-Allard
Member of Congress

Peter DeFazio
Member of Congress

John J. Duncan Jr.
Member of Congress

Keith Ellison
Member of Congress

Scott DesJarlais
Member of Congress

Peter J. Visclosky
Member of Congress

Lou Barletta
Member of Congress

Jerrold Nadler
Member of Congress

Marcy Kaptur
Member of Congress

Betty McCollum
Member of Congress

Stephen F. Lynch
Member of Congress

Nydia M. Velázquez
Member of Congress

Linda T. Sánchez
Member of Congress

José E. Serrano
Member of Congress

French Hill
Member of Congress

Henry C. "Hank" Johnson
Member of Congress

Chellie Pingree
Member of Congress

Don Young
Member of Congress

Paul D. Tonko
Member of Congress

Daniel M. Donovan, Jr.
Member of Congress

Grace F. Napolitano
Member of Congress

Daniel T. Kildee
Member of Congress

Bennie G. Thompson
Member of Congress

Ted Deutch
Member of Congress

Marc Veasey
Member of Congress

Eleanor Holmes Norton
Member of Congress

Ben Ray Luján
Member of Congress

Robert. A Brady
Member of Congress

Eliot L. Engel
Member of Congress

Suzanne Bonamici
Member of Congress

Rick Larsen
Member of Congress

Judy Chu
Member of Congress

Dave Loebsack
Member of Congress

Scott Peters
Member of Congress

Brian Higgins
Member of Congress

Gene Green
Member of Congress

Debbie Dingell
Member of Congress

Cheri Bustos
Member of Congress

Derek Kilmer
Member of Congress

Rosa DeLauro
Member of Congress

David N. Cicilline
Member of Congress

Walter Jones
Member of Congress

Marcia L. Fudge
Member of Congress

Al Green
Member of Congress

Richard M. Nolan
Member of Congress

Bill Pascrell, Jr.
Member of Congress

Steve Pearce
Member of Congress

Todd Rokita
Member of Congress

Albio Sires
Member of Congress

Daniel W. Lipinski
Member of Congress

Nita Lowey
Member of Congress

Jan Schakowsky
Member of Congress

C.A. Dutch Ruppersberger
Member of Congress

John Garamendi
Member of Congress

Julia Brownley
Member of Congress

Earl A. “Buddy” Carter
Member of Congress

Doug Lamborn
Member of Congress

David B. McKinely, P.E.
Member of Congress

Mia Love
Member of Congress

Tulsi Gabbard
Member of Congress

Tim Walz
Member of Congress

Kevin Cramer
Member of Congress

Marcy Kaptur
Member of Congress

Steve Cohen
Member of Congress

Paul Cook
Member of Congress

Gregory W. Meeks
Member of Congress

Ann McLane Kuster
Member of Congress

Collin C. Peterson
Member of Congress

Leonard Lance
Member of Congress

Carolyn B. Maloney
Member of Congress

Lee Zeldin
Member of Congress

J. Luis Correa
Member of Congress

Maxine Waters
Member of Congress

Adam B. Schiff
Member of Congress

Charlie Crist
Member of Congress

Jackie Speier
Member of Congress

Alan Lowenthal
Member of Congress

Trent Kelly
Member of Congress

Ruben J. Kihuen
Member of Congress

Robin L. Kelly
Member of Congress

Josh Gottheimer
Member of Congress

William R. Keating
Member of Congress

Zoe Lofgren
Member of Congress

Rodney Davis
Member of Congress

John J. Faso
Member of Congress