Benefits Buzz

Surprise – The Cadillac Tax and other ACA Taxes have been Delayed

Posted on January 23rd, 2018

Last night, President Donald Trump signed into law a temporary spending bill which ends the government shutdown and funds federal spending obligations for the next few weeks. The spending bill also included a few healthcare surprises. The bill suspends or delays three taxes that were created by the Affordable Care Act (ACA).
  • The Cadillac Tax has been delayed for an additional two years. It was originally scheduled to take effect this year, but it was previously delayed until 2020. The additional two-year delay means it now won’t take effect until 2022. This will be welcomed news for many employers.
  • The spending bill also includes a two-year moratorium on the 2.3% tax on the sale of medical devices. This will be in effect for all of 2018 and 2019.
  • The spending bill also includes a one-year moratorium on the health insurer tax. This will be effective in 2019.  
It’s clear that efforts are still being made to change or repeal parts of the ACA. However, these efforts are now being made outside of pure healthcare reform initiatives. The Individual Mandate was essentially repealed through the recently passed tax reform bill, known as the Tax Cuts and Jobs Act. Now, additional changes have been made through a government spending bill.  

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