House votes to repeal ObamaCare's 'Cadillac tax'

Source: The Hill | July 17, 2019 | Peter Sullivan

The House on Wednesday voted to repeal ObamaCare’s “Cadillac Tax” on high-cost health plans, removing a part of the health law opposed by many in both parties.

The wide bipartisan vote of 419-6 illustrates how the tax is one of the few areas of ObamaCare that has opposition across the political aisle.

The tax was designed to help keep health care costs down by discouraging overly-generous “Cadillac” health insurance plans. But both unions and employers opposed the tax, helping to set up a broad coalition against it.

With former President Obama out of office, the main defenders of the tax are now health economists, who say it is a valuable tool to control health care spending.

Repealing the tax will cost the government the hefty sum of $196.9 billion over 10 years, according to the nonpartisan Congressional Budget Office. 

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The Cadillac Tax had never actually gone into effect, given that Congress repeatedly delayed it when it came close to taking effect. The vote Wednesday would fully repeal it, though it remains unclear whether the Senate will also bring the bill up for a vote.

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