Harder Votes to Prevent Tax Hike on Health Insurance

July 17, 2019
Press Release
Forty Percent Tax Would be Passed on to Consumers

WASHINGTON – Representative Josh Harder (CA-10) today voted for a bipartisan bill to eliminate a 40 percent tax on top-tier health insurance plans. The so-called “Cadillac Tax” was initially passed into law as part of the Affordable Care Act (ACA), but its implementation has been repeatedly delayed thanks to bipartisan opposition.

“We’re already being nickel and dimed to death by taxes in California – the last thing we should do right now is add more taxes that will fall on middle class families in the Central Valley,” said Rep. Harder. “The ACA did a lot of good, but it wasn’t perfect – we need to do more to cut the costs of care and prescription drugs. Repealing this tax is an important first step to doing that.”

The Cadillac Tax on high-cost health insurance plans would increase costs for many union members who fought for decades to secure excellent health care benefits. As a result, the repeal of the tax is supported by AFL-CIO, SEIU, AFSCME, NFIB, NAM, National Retail Federation, International Association of Machinists and Aerospace Workers, and IBEW. The tax is also opposed by notable business and health care organizations, including the United States Chamber of Commerce.

The implementation of the tax has been repeatedly delayed since the ACA was signed into law in 2010. The most recent delay would push implementation until 2020 but would hike rates by 40 percent on a wide variety of high-cost health care plans. While the tax was intended to contain the cost of employer-sponsored health plans, it would cause adverse effects on the affordability and quality of health care.

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