Spending Resolution Affects ACA Taxes

On Jan. 22, 2018, President Donald Trump signed into law a short-term continuing spending resolution to end the government shutdown and continue funding through Feb. 8, 2018. The continuing resolution impacts three taxes and fees under the Affordable Care Act (ACA).

Specifically, the continuing resolution:

  • Delays implementation of the 40% Excise Tax or “Cadillac Tax” on high-cost group health coverage two additional years, with a new effective date of January 1, 2022
  • Provides an additional one-year moratorium on the health insurance providers fee for 2019 (although the fee continues to apply for 2018)
  • Extends the moratorium on the medical device excise tax for an additional two years, through 2019

 

ACTION STEPS

Employers should be aware of the evolving applicability of existing ACA taxes and fees so that they know how the ACA affects their bottom lines. Gilroy Kernan & Gilroy will continue to keep clients informed of changes.