In advance of the U.S. House of Representatives’ vote to fully repeal the so-called Cadillac tax on July 17, the Partnership for Employer-Sponsored Coverage issued its full endorsement of passage of the Middle Class Health Benefits Tax Repeal Act, H.R. 748, in a letter to Speaker Nancy Pelosi and Minority Leader Kevin McCarthy. An excerpt from the letter is below and the full letter can be read HERE.
The 40 percent excise tax would force employers to cut or limit employee benefits. The tax is a blunt instrument that proponents envision will address the demand side of rising health costs. While dubbed the Cadillac tax because the provision was targeting “high cost” employer-sponsored health coverage, it would impact the vast majority of employee benefits plans.