Many plan sponsors have made substantial progress in lowering their healthcare costs and making their healthcare plans more efficient. Even so, many will eventually be hit by the Affordable Care Act’s 40 percent excise tax on high-cost employer health plans.
The tax is currently scheduled to go into effect in 2018. However, Congressional leaders on Tuesday night (12/15) reached an agreement on a year-end spending and tax deal that would delay the Cadillac Tax as well as delay multiple other Affordable Care Act healthcare taxes and fess.
- Cadillac Tax on high-value health plans would be delayed from going into effect until 2020 instead of 2018.
- A fee levied on health insurance companies, which insurers typically pass on to businesses and individuals in the form of higher premiums, might also be delayed.
- The deal includes a two-year pause for the 2.3 percent tax on medical devices.
For the full article, “Congress to Delay ACA’s ‘Cadillac’ Tax on Pricey Health Plans until 2020” from the Washington Post, please click here.