Cadillac Tax Delayed to 2022

Federal Health Care Reform

In a big victory for HR Policy members, the Affordable Care Act's (ACA's) Cadillac tax has been delayed for two years thanks to concentrated efforts of the Association, assisted by research from the American Health Policy Institute.  The delay was included in the continuing resolution to fund the government signed by President Trump this week.  AHPI has published numerous studies on the negative impact the Cadillac tax would have on employer-sponsored health care that have proved to be touchstones for advocacy efforts by the Association and other groups.  Had the Cadillac tax not been delayed, 31 percent of the Association’s members would have been hit by the tax in 2020 absent significant reductions in health care benefits to their employees.  The HR Policy-supported short-term spending bill also delayed the medical device tax for two years (2018 and 2019), suspended the health insurance tax on fully-funded individual and group plans for 2019 (the tax will remain in effect for 2018), and funded the Children’s Health Insurance Program for six years.  The Association will continue to push for further delays and ultimately a repeal of these ACA taxes.