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Cadillac Tax and Other ACA Taxes Delayed

Amidst the drama of the short-lived government shutdown, Congress passed and the President signed continuing appropriations legislation last week providing funding for the government until February 8, 2018. Included within this legislation were important provisions impacting certain Affordable Care Act (ACA) taxes, including:

  • A two-year delay of the excise tax on high-cost employer-sponsored health coverage, commonly referred to as the Cadillac Tax, until 2022; and
  • A one-year moratorium on the annual fee paid by carriers based on their proportionate market share of premiums written, which is also known as the health insurer tax or HIT, for the 2019 calendar year.

These delays are welcome news for employer sponsored health plans. Now, employers will have more time to assess the potential impact of the Cadillac Tax on their plan. Additionally, for employers sponsoring fully insured plans, they may see decreases in premiums for the 2019 plan year, as carriers would not need to build the cost of the health insurer tax into their rates.

Content produced by our partners ​ETC (Eligibility Tracking Calculators). For more information on other ACA & HR Compliance topics, speak to a benefit consultant today.