Senators introduce bipartisan bill targeting ‘Cadillac Tax'

Senators introduce bipartisan bill targeting ‘Cadillac Tax'

A bipartisan pair of senators introduced a bill Thursday to repeal ObamaCare’s “Cadillac Tax," which they argue unfairly targets people receiving employer healthcare benefits.

The legislation by Sens. Dean HellerDean Arthur HellerDemocrat Jacky Rosen becomes 22nd senator to back bipartisan infrastructure deal 9 Senate seats most likely to flip in 2022 On The Trail: Democrats plan to hammer Trump on Social Security, Medicare MORE (R-Nev.) and Martin HeinrichMartin Trevor HeinrichSenate panel advances controversial public lands nominee in tie vote A plan to address the growing orphaned wells crisis Schumer vows to only pass infrastructure package that is 'a strong, bold climate bill' MORE (D-N.M.) helps build momentum for the years-old campaign to eliminate the tax, which has already earned bipartisan support in the House.

“My hope is that reasonable members of Congress on both sides of the aisle will join us in this important, bipartisan endeavor to protect middle-class Americans,” Heller wrote in a statement.


The Cadillac Tax will go into effect in 2018 and impact any employers who offer health insurance plans that costs more than $10,200 a year for individuals or $27,450 a year for families. Under the law, employers will have to pay 40 percent of the cost above those limits.

The repeal effort has been championed in the House by Rep. Joe Courtney (D-Conn.), who argues that the tax hits people the hardest in more expensive areas, like the Northeast and West Coast.

All three lawmakers gathered for a press conference Thursday to announce the Senate’s companion version of the bill. The House bill, announced this spring, has yet to see a vote in the chamber unlike other bills repealing pieces of ObamaCare, like the Medical Device Tax.

Repealing the tax has been at the center of intense lobbying by groups ranging from unions to insurance agencies, which have recently formed a coalition called Alliance to Fight the 40.

Leaders of that group were quick to applaud the new legislation in the Senate.

“Repealing the 40 percent tax, thereby preserving high-quality employer-sponsored health coverage, should and would be a bipartisan, bicameral success story,” American Benefits Council President James Klein wrote in a statement, distributed by the coalition.