House votes to get rid of ACA's controversial 'Cadillac' tax on high-cost plans

Affordable Care Act highlighted
The House voted overwhelmingly to repeal the Affordable Care Act's "Cadillac" tax. (Getty/Ellenmck)

The House of Representatives voted to repeal a controversial excise tax on high-cost health plans mandated by the Affordable Care Act (ACA).

The vote late Wednesday drew cheers from the insurance industry, which has fought the tax since the passage of the ACA in 2010. The tax has been delayed several times and never gone into effect, with the latest delay expiring in 2022.

The 40% excise tax is triggered for employer-sponsored health plans that reach a certain cost threshold.

The tax is one of the few parts of the ACA that generates bipartisan disdain, as traditionally Democratic allies such as unions have called for its repeal.

RELATED: 1 in 5 employers may face ACA's 'Cadillac' tax on high-cost health plans, KFF study shows

America’s Health Insurance Plans (AHIP), the top insurance lobbying group, celebrated the repeal ahead of the vote Tuesday.

The group also called on the House and the Senate to repeal the ACA’s tax on health insurers.

“Taking action now on both these taxes will significantly improve health care affordability for American workers, businesses, and taxpayers,” said AHIP President Matt Eyles in a statement.

The health insurance tax has been delayed for several years but will go back into effect in 2020.

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