ALBUQUERQUE, N.M. — Legislation sponsored by New Mexico Sen. Martin Heinrich repealing a provision in the Affordable Care Act known as the “Cadillac Tax” was signed into law by President Donald Trump before the Christmas break.
The “Cadillac Tax” was to tax high-cost health insurance plans and would have impacted middle-class health benefits, the Democratic senator’s office said. The repeal was included in an appropriations package passed by Congress.
“Eliminating this onerous tax on employees’ health coverage will protect important benefits for workers and ensure that businesses and families get a fair deal,” Heinrich said. “I am proud to help lead this bipartisan effort to ensure millions of middle-class families who rely on employer-based health care are not unfairly penalized by this tax.”
Without repeal, the “Cadillac Tax” would impact employers and families whose health insurance plans cost more than $11,100 for an individual, and $29,750 for family coverage, Heinrich’s office said. The tax could have negatively impacted 718,000 people in New Mexico, including public employees, service industry workers, and small business owners and retirees.