ACA Tax Delays

On January 22, 2018 Congress passed (and the President signed) the Federal Register Printing Savings Act, which contains delays on three Affordable Care Act taxes: a tax on medical devices, the “Cadillac tax” on generous employer-sponsored health plans and a tax on health insurance companies.

Medical devices
The 2.3% tax on medical device sales that was set to start January 1 was extended through 2019.  Absent future legislation extending the delay or repealing the tax, it will become effective on January 1, 2020.

Cadillac tax
The 40% excise tax on high-cost health care (commonly referred to as the “Cadillac Tax”) effective date was pushed back for two years, from 2020 to until 2022.

Health insurer tax
A one-year suspension of a tax on health insurers under Section 9010 of the ACA was delayed to 2019. Beginning next year the tax will be assessed and collected for 2018.

The Act only funds the federal government until February 8, 2018, so additional budget legislation will likely be considered by Congress. We will keep you updated as needed.