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WASHINGTON, DC – Today, Congresswoman Debbie Dingell (D-MI) voted to permanently repeal the so-called Cadillac Tax, a bill she cosponsored and champions. The excise tax on high-cost health insurance plans hurts workers and families who receive coverage through an employer and has already been delayed twice.

“Hard-working Americans face escalating healthcare costs and terrifying out-of-pocket expenses every day,” said Dingell. “The reality is, in our current system, health coverage is a benefit used by employers to attract the best talent and reward workers. The misguided Cadillac Tax makes it more expensive for employers to offer this benefit workers depend on and shifts even more costs to patients. We’ve worked together twice to delay this policy, and now it’s time we do away with it once and for all. I will always stand with workers and labor to protect quality, affordable healthcare.”

If the policy goes into effect in 2022, a 40 percent tax would be applied on health insurance expenditures over $11,200 for an individual and $30,150 per family. Employers could reduce the value of their health benefits to avoid the tax threshold, or make up the difference by shifting costs onto workers and their families. Economists and actuaries have projected that the tax will unfairly and disproportionately impact older workers, smaller businesses, women, and workers in regions with high health care costs. These are factors over which employers have no control. Instead of curbing costs, the tax will burden workers, and specifically those who already face high health care costs.

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