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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Michelle Cammayo

About Michelle Cammayo

Michelle Cammayo has more than a decade of Employee Benefits experience specializing in all lines of health and welfare benefits, including Medical, Dental, Vision, Basic and Voluntary Life, Short and Long-Term Disability and Employee Assistance Programs. Her primary roles and responsibilities include carrier negotiations, strategic oversight, and educating HR staff and employees with regards to employee benefit packages and/or solutions.

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