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Government Spending Resolution Affects ACA Taxes

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This week, President Trump signed into law an interim spending bill to fund the federal government through February 8, 2018. This spending resolution affects three taxes and fees under the Affordable Care Act (ACA).

  • The moratorium on the Cadillac tax which taxes high-cost group health plans was extended until 2022.
  • The moratorium on the health insurance providers fee was extended through 2019 (the fee will continue to apply for 2018). The health insurance providers fee is an annual, non-deductible fee placed on health insurers. In many cases, providers of fully-insured medical, dental and vision plans pass this cost onto employers through plan premiums.
  • The moratorium on the medical device tax was extended through 2019. The Medical Device Tax is a 2.3% excise tax on the sales of certain medical devices that is typically paid by manufacturers or importers of medical devices.

What Employers Need to Know

Employers should continue to be aware of these fees/taxes throughout the upcoming years as they can impact overall cost.

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