Cadillac Tax, Health Insurance Industry Fee, Medical Device Tax – Delayed or Suspended

At the start of the week, President Trump signed into law a short-term spending bill that included delays or suspensions of three taxes under the Affordable Care Act—a move that many will regard as good news.

DELAYED – Cadillac Tax is delayed two more years until January 1, 2022.

SUSPENDED – Health Insurance Industry Fee is suspended for 2019 which means, in theory, medical renewal trends should be down from 2018.  Estimated cost impact of the Health Insurance Industry Fee was 3 to 4 percent in 2018.

SUSPENDED – The Medical Device Tax is suspended until 2020.  This tax is paid by the manufacturer or importer of a taxable medical device.


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About Michelle Cammayo

Michelle Cammayo has more than 13 years of Employee Benefits experience specializing in all lines of health and welfare benefits. Today, Michelle works closely with clients and partners to provide guidance in areas of the law including ERISA, HIPAA, COBRA, FMLA and PPACA. She also oversees the Compliance Department at Bolton & Company to ensure we are helping our clients manage and eliminate risk with regards to employee benefit compliance.

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