WASHINGTON, DC – Today, the Middle-Class Health Benefits Tax Repeal Act, led by U.S. Congressman Donald Norcross (NJ-01), passed the U.S. House of Representatives. The legislation, which passed with bipartisan support, repeals a 40% excise tax – commonly known as the “Cadillac Tax” – on certain employer-sponsored health insurance plans.

"Americans have been rightfully demanding lower healthcare costs and today the House responded to their call," said Congressman Norcross, a former IBEW and SJ AFL-CIO leader who spent years negotiating workers’ benefit packages. "Congress has been continually delaying this policy instead of enacting an outright repeal, which means workers and negotiators have been unable to properly plan or bargain during three-to-five year wage and benefit negotiations. By repealing this tax, we’re giving workers the certainty they need to plan their benefit packages, and working families are safeguarded from an undue increase to their healthcare costs."

Norcross was an original lead sponsor of the repeal, which was introduced by Congressman Joe Courtney (CT-02).

"The American people have made it clear that they want Congress to address the rising cost of health care," said Congressman Courtney. "Out-of-pocket costs are unaffordable for growing numbers of families, even those who have insurance. If the 40% excise tax goes into effect, we know this affordability crisis will dramatically worsen. Actuarial experts have repeatedly warned that this tax will disproportionately and unfairly impact older workers, women, and working families in expensive geographic areas. My legislation to repeal the 40% tax has wide and unified support from a range of stakeholders, patient groups, employers, and labor organizations. It’s my belief that the legislation will receive the same broad support in this Congress, and that we will scrap the Cadillac Tax once and for all."

The “Cadillac Tax” affects employers and families whose health insurance plans cost more than $11,100 for an individual and $29,750 for family coverage. Although the tax was originally a provision in the Affordable Care Act, implementation has been delayed numerous times by bipartisan coalitions in Congress, most recently to 2022.

The legislation is supported by a wide array of organizations, including the American Benefits Council and AFL-CIO:

"Employers provide health coverage to more than180 million Americans. We applaud the strong bipartisan support to repeal the Cadillac tax and commend Congressman Joe Courtney for sounding the alarm – even before the tax was enacted – about the burden it will place on working families and employers. The tax hits plans that are not ’overly generous’ but, rather, are expensive for reasons beyond the control of employers and families who need coverage to protect themselves from financial ruin.  We proudly stand with Congressman Courtney who has worked tirelessly to protect employer-provided health coverage by advocating repeal of the Cadillac tax," said James A. Klein, President of American Benefits Council.

"Working families have waited too long for repeal of the 40% health benefits tax," said AFL-CIO President Richard Trumka. "It's a shame that health care remains out of reach for millions across the country because they can’t afford to see their doctor. It’s time to end this tax that drives up deductibles and copays that empty workers’ wallets."

Additional supportive organizations include: Air Line Pilots Association International (ALPA), Alliance for Retired Americans (ARA), The Alliance to Fight the 40, Amalgamated Transit Union (ATU), American Cancer Society Cancer Action Network, America’s Health Insurance Plans, American Federation of State, County and Municipal Employees (AFSCME), American Federation of Teachers (AFT), Association of Flight Attendants—CWA (AFA), Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), CancerCare, Communications Workers of America (CWA), The Council of Insurance Agents and Brokers, Department for Professional Employees (DPE), First Focus Campaign for Children, Guild of Italian American Actors (GIAA), Government Finance Officers Association (GFOA), Health Action Council, The Immune Deficiency Foundation, Independent Insurance Agents & Brokers of America, International Association of Fire Fighters (IAFF), International Association of Machinists and Aerospace Workers (IAM), International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART), International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers (IBB), International Brotherhood of Electrical Workers (IBEW), International Brotherhood of Teamsters (IBT), International Federation of Professional and Technical Engineers (IFPTE), International Longshore and Warehouse Union (ILUW), International Union of Bricklayers and Allied Craftworkers (BAC), International Union of Police Associations (IUPA),International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW),  Laborers' International Union of North America (LiUNA), National Association of Counties (NACo), National Association of Letter Carriers (NALC), National Education Association (NEA), National Association of Health Underwriters, National Electric Contractors Association, National League of Cities, National Rural Electric Cooperative Association, The Rural Broadband Association, Service Employees International Union (SEIU), Stage Directors and Choreographers Society (SDC), Transportation Communications Union/International Association of Machinists and Aerospace Workers (TCU/IAM), UNITE HERE, United Brotherhood of Carpenters and Joiners of America, United Food and Commercial Workers International Union (UFCW), United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial & Service, Workers International Union (USW), American Postal Workers Union (APWU), National Nurses United (NNU), United Mine Workers of America (UMWA), and WorldatWork.

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Contact: Ally Kehoe, Communications Director
ally.kehoe@mail.house.gov