Archived Insight | January 31, 2018

Spending Law Delays Cadillac Tax and Suspends Other ACA Taxes

On January 22, 2018, President Trump signed into law spending legislation to fund the federal government through February 8, 2018. The law, known as a Continuing Resolution (CR), resulted in the government reopening after a three-day shutdown. The CR delays or suspends two Affordable Care Act taxes that directly affect employer-sponsored plans: the 40 percent excise tax on high-cost plans (the “Cadillac tax”) and the health insurance premium tax. It also suspends the medical device tax.

This Update summarizes the health provisions in the CR and notes the implications for plan sponsors.

Spending Law Delays Cadillac Tax and Suspends Other ACA Taxes

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This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.