CADILLAC TAX DELAYED TWO YEARS
January 23, 2018
Putting an end to a brief government shutdown, Congressional leadership passed a bill to provide short-term funding of government operations through February 8. But the bill, which was signed into law by President Trump on Monday, did more than reopen the government – it delayed the 40% excise tax on high-cost health plans (also known as the “Cadillac Tax”) by two years, extending the effective date to 2022.
The Cadillac Tax has been met with ongoing bipartisan opposition, and consumer-driven healthcare advocacy organizations, such as ECFC, have expressed support for the delay.
In addition to delaying the Cadillac Tax, the short-term funding bill also included provisions for delaying the ACA’s 2.3% medical device tax for two years, suspending the health insurance tax (HIT) for one year and extending the Children’s Health Insurance Program (CHIP) by six years.
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