Heinrich, Rounds Laud Bipartisan Passage Of Cadillac Tax Repeal

WASHINGTON, Dec. 20 -- Sen. Martin Heinrich, D-New Mexico, issued the following news release:

U.S. Senators Martin Heinrich (D-N.M.) and Mike Rounds (R-S.D.) passed bipartisan legislation to repeal a provision in the Affordable Care Act (ACA) known as the "Cadillac Tax," which taxes high-cost health insurance plans and impacts middle-class health benefits.

The Middle Class Health Benefits Tax Repeal Act of 2019, was included as an amendment to the appropriations package, H.R. 1865, that passed the Senate by a vote of 71-23. On July 17, the House version of the legislation passed by a vote of 419-6. The bill now awaits the president's signature.

"Eliminating this onerous tax on employees' health coverage will protect important benefits for workers and ensure that businesses and families get a fair deal," said Heinrich. "I am proud to help lead this bipartisan effort to ensure millions of middle-class families who rely on employer-based health care are not unfairly penalized by this tax."

"Healthcare costs for South Dakota families are already too high," said Rounds. "The Cadillac Tax threatened to raise healthcare premiums even higher by imposing a 40 percent tax on certain employer-sponsored health care plans. I'm pleased our bipartisan measure to fully repeal the Cadillac Tax was included in the fiscal year 2020 omnibus appropriations bill, and I look forward to continuing to find ways to lower healthcare costs for hardworking families."

Without repeal, the "Cadillac Tax" would impact employers and families whose health insurance plans cost more than $11,100 for an individual, and $29,750 for family coverage. The tax could negatively impact 718,000 people in New Mexico and 437,000 in South Dakota, including public employees, service industry workers, and small business owners and retirees.

Although the tax was originally a provision in the Affordable Care Act, implementation has been delayed numerous times because of the senators' bipartisan efforts.