CADILLAC TAX AND HEALTH INSURANCE PROVIDER FEE

Cadillac Tax and Health Insurance Provider Fee

As part of the legislation to end the federal government shutdown, the President signed into law a bill that affects certain provisions of the Affordable Care Act (ACA).

The legislation:

• Delays the Cadillac Tax until 2022: The Cadillac Tax, which previously was scheduled to take effect in 2020, will now take effect in 2022. The ACA imposes a 40 percent excise tax, known as the Cadillac tax, on the cost of coverage of an employer-sponsored plan exceeding $10,200 for single coverage and $27,500 for family coverage.
• Establishes a Health Insurance Provider Fee Moratorium in 2019: The fee will not be collected in 2019. The fee is effective for 2018, but was not collected for 2017. Self-funded health benefit plans are not affected by this fee.