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.

Cadillac Tax Blog

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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