Attached to the 1/22/18 short term spending bill passed by Congress are delays of three taxes under the Affordable Care Act (ACA), and a six-year extension of the Children’s Health Insurance Program (CHIP).

    Tax and Fee Delays

    • Cadillac Tax” (40% Excise Tax) is delayed two more yearsCadillac Tax
      • New effective date of 1/1/22
    • Health Insurance Industry Fee (aka Health Insurer Tax)
      • Has been suspended for one year (2019)
      • Applies only to insured business
      • Is based on each insurer’s share of the taxable health insurance premium base
      • Helps fund federal and state Marketplaces/Exchanges
      • Paid by Insurers
      • Tax deductible for employers as part of premium
    • Medical Device Tax is suspended for two years (2018-2019)
      • This delays the excise tax (2.3%) on the sale of certain medical devices by the manufacturer or importer of the device
      • This moratorium was set to expire on 12/31/17 but has been suspended for two more years



    Should you have any questions, please reach out to your FosterThomas benefits account manager or customer service representative.

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