Cadillac Tax Repealed

On Dec. 20, 2019, President Trump signed into law a spending bill that repeals the following three taxes and fees under the Affordable Care Act (ACA):

  • The Cadillac tax on high-cost group health coverage, beginning in 2020;
  • The medical devices excise tax, beginning in 2020; and
  • The health insurance providers fee, beginning in 2021.

The law also extends PCORI fees to fiscal years 2020-2029. Under the ACA, the PCORI fees were scheduled to apply to policy or plan years ending on or after Oct. 1, 2012, and before Oct. 1, 2019. The 2019 continuing spending resolution reinstates PCORI fees for the 2020-2029 fiscal years. As a result, specified health insurance policies, applicable self-insured health plans, and employers with Health Reimbursement Arrangements (HRAs) must continue to pay these fees through 2029.

Refer to the below compliance bulletin for details and contact your NEEBCo representative with questions.

Cadillac, Other Key ACA Taxes Repealed 12-23-19