House votes to repeal tax on high-value employer-based health plans

The House of Representatives last night voted 419-6 to pass legislation (H.R. 748) that would repeal the 40% excise tax on high-value employer-sponsored health plans set to begin in 2022. Repealing the so-called “Cadillac” tax would reduce federal revenues by an estimated $197 billion, according to the Congressional Budget Office and Joint Committee on Taxation. The tax was to begin in 2018 under the Affordable Care Act, but Congress has delayed it several times. About one in five employers could hit the taxable threshold in 2022, according to the Kaiser Family Foundation.