Maloney Votes to Repeal Excise Tax on High-Cost Health Insurance Plans

WASHINGTON, July 18 -- Rep. Sean Patrick Maloney, D-New York, issued the following news release:

Last evening, Rep. Sean Patrick Maloney (NY-18) voted to permanently repeal an inactive excise tax on high-cost health insurance plans, known as the "Cadillac Tax", that could limit access to affordable health care coverage. New Yorkers utilizing a high-cost health insurance plan from their employer that exceeds a set threshold - $11,200 for individuals and $30,100 per family - could see a 40 percent tax increase on all health benefits paid beyond that threshold.

Though the tax implementation has twice been delayed, it is scheduled to go into effect in 2022. The bipartisan Middle Class Health Benefits Tax Repeal Act would permanently repeal the Cadillac Tax.

"We've got to do everything we can to lower the cost of health care for Hudson Valley workers and their families, which is why repealing the Cadillac Tax is a no-brainer. This tax could hurt workers and small businesses alike, and runs counter to what we're working to achieve here in the House: more access to quality, affordable health care," said Rep. Sean Patrick Maloney.

If the Cadillac Tax is not repealed, one in five employers would be impacted, according to a new report by the Kaiser Family Foundation. Implementation of the tax would likely force employers to limit the health benefits they offer to workers and their families in order to avoid exceeding the threshold. Economists believe that, the Cadillac Tax will unfairly impact older workers, small businesses and women, all of whom already face high health care costs.

Several Hudson Valley workers and their unions strongly support the repeal of the Cadillac Tax, including the New England Regional Council of Carpenters.

"Workers and families are already facing steep health care costs - the last thing they need is a 40 percent tax on their insurance plan. The NERCC applauds the repeal of the Cadillac Tax, and thanks Rep. Maloney for fighting to lower the cost of health insurance for New York workers," said Thomas Flynn, Executive Secretary-Treasurer of the New England Regional Council of Carpenters.

Since retaking the majority, House Democrats have worked to protect the Affordable Care Act, lower health care and prescription drug costs, stabilize the market, and expand access to care for rural communities facing a care and physician shortage.