With the signing of the recent short-term continuing spending resolution on January 22, 2018, three fees and taxes under the Affordable Care Act (ACA) are now delayed until further guidance is issued.
- The Cadillac tax: The continuing resolution delays implementation of the Cadillac tax on high-cost group health coverage for an additional two years, until 2022.
- The medical device excise tax: The moratorium on the medical device excise tax was also extended under the continuing resolution for an additional two years, through 2019. As a result, the medical devices tax will not apply to any sales made between Jan. 1, 2016, and Dec. 31, 2019.
- The health insurance providers fee: The continuing resolution also provides an additional one year moratorium on the health insurance providers fee, for the 2019 calendar year. However, this fee continues to apply for 2018.
Given the ever-changing nature of the legislative environment, it is important for employers to stay abreast of both existing and delayed ACA taxes and fees and how they impact their organization.