Rep. Kelly Introduces Bipartisan Bill to Repeal Obamacare’s Cadillac Tax

Jan 4, 2017 Issues: Economy and Jobs, Health Care, Tax Reform

Legislation will abolish central part of health care law

Tax threatens employer-sponsored benefits for millions

WASHINGTON — U.S. Representative Mike Kelly (R-PA) – a member of the House Ways and Means Committee – issued the following statement today regarding the introduction of H.R. 173, the Middle Class Health Benefits Tax Repeal Act of 2017, which will repeal the so-called ‘Cadillac Tax’ provision within the Affordable Care Act (Obamacare). The controversial provision would impose a 40 percent excise tax on all employer-provided health insurance plans valued at more than $10,200 for individual coverage and $27,500 for families. H.R. 173 is co-sponsored by Rep. Joe Courtney (D-CT).

“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. 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 so-called Affordable Care Act will make health care even less affordable and accessible for so many households across America. 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. 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.

“As our next Vice President Mike Pence reminded me and my colleagues this morning, we have a duty to fulfill our promise to the millions of Americans who are awaiting and demanding 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actually lowers costs and is patient-centered, both Republicans and Democrats agree that this onerous tax should be repealed immediately. Doing so would mark a promising and productive start to the new year.”

NOTE: The Cadillac Tax is currently scheduled to take effect in 2020. (Its original implementation under the Affordable Care Act was to begin in 2018; the bipartisan Consolidated Appropriations Act of 2016 delayed it for two years.) According to analysis by the Kaiser Family Foundation, the tax will impact approximately 42 percent of American employers and their employees.