‘Cadillac Tax’ Delayed to 2022
A two-year delay of the 40 percent “Cadillac Tax” on employer-sponsored health coverage is part of the resolution that Congress passed to end the federal government “shutdown” in January 2018.
The Cadillac Tax is a 40 percent tax on the value of employer-sponsored health coverage that exceeds certain benefit thresholds. Enacted as part of the Affordable Care Act (ACA), the tax was originally slated to go into effect in 2018 before being moved back until 2020. Congress’ latest action means the tax will be delayed to 2022.
The American Benefits Council has pledged to continue to work for full repeal of the Cadillac Tax. The Alliance belongs to the American Benefits Council on behalf of its member employers.
The measure also includes a two-year delay of the ACA tax on medical devices, a one-year delay (for 2019 only) of the ACA health insurer fee and reauthorization of the Children’s Health Insurance Program (CHIP) for six years, according to the American Benefits Council.