Horizon Actuarial Services, LLC
  • Home
  • About Us
    • Horizon Updates
    • Selected Bios
  • Our Services
  • Resources
    • News
    • Publications
    • External Links
  • Careers
  • Contact Us

​

Temporary Suspension of Three Health Taxes Created Under the Affordable Care Act

1/29/2018

 
President Trump signed a short-term spending bill into law on January 22, 2018 after its passage in the House and Senate. While the primary purpose of the bill was to end the Federal government shutdown and fund government operations through February 8, 2018, the bill also included several provisions related to broader health policy:
 
A.  The Children’s Health Insurance Program (CHIP) is extended for six years.  Federal funding had previously ceased on September 30, 2017.
 
B.  Three health taxes created under the Affordable Care Act are temporarily suspended or delayed:
 
1.  Excise Tax on High-Cost Health Coverage:
The effective date of the 40% excise tax on health coverage exceeding certain thresholds (commonly referred to as the Cadillac Tax) is postponed from January 1, 2020 to January 1, 2022.  The multiemployer threshold for computing the excise tax was set at $27,500 per year based on a January 1, 2018 effective date and is expected to be adjusted for inflation.
 
Both fully insured and self-funded health funds, including retiree only funds, are subject to this excise tax.  Projected retiree medical liabilities that included this tax for 2020 and 2021 will now be lower, as the tax amounts for these years will now be removed from the liability calculation.
 
2.  Health Insurer Fee for Fully Insured Plans:
This bill suspends the insurer tax for calendar year 2019.  The insurer fee, which began in 2014, was temporarily suspended in 2017 before being re-implemented for 2018.  As a result, fully insured funds with 2019 renewals should see lower premium levels than they would otherwise have seen. 
 
3.  Medical Device Tax:
The 2.3% medical device excise tax began on January 1, 2013 and is imposed on manufacturers and importers of certain medical devices. The tax was suspended for 2016 and 2017 and was slated to return for 2018.  This bill further suspends the tax for calendar years 2018 and 2019.

    Categories

    All
    External Links
    Health & Welfare Issues
    Horizon Updates
    News
    Pension Issues
    Publications

    Archives

    October 2022
    August 2022
    August 2021
    March 2021
    January 2021
    July 2020
    June 2020
    May 2020
    December 2019
    November 2019
    October 2019
    August 2019
    June 2019
    October 2018
    August 2018
    June 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    October 2017
    September 2017
    August 2017
    July 2017
    May 2017
    February 2017
    December 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    March 2016
    February 2016
    January 2016
    October 2015
    July 2015
    June 2015
    December 2014
    October 2014
    August 2014
    February 2014
    December 2013
    October 2013
    August 2013
    May 2013
    March 2013
    February 2013
    November 2012
    August 2012
    March 2012
    January 2012
    November 2011
    October 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    November 2010
    October 2010
    September 2010
    August 2010
    July 2010
    June 2010
    March 2010
    December 2009
    November 2009
    October 2009
    September 2009
    August 2009
    April 2009
    February 2008
    October 2007

    RSS Feed

Home | About Us | Our Services | Resources | Careers | Contact Us
Terms of Use | Website Privacy Policy | California Privacy Rights
​Copyright 2007-2021. Horizon Actuarial Services, LLC. All rights reserved.
​In Memory of Brian Dailey
  • Home
  • About Us
    • Horizon Updates
    • Selected Bios
  • Our Services
  • Resources
    • News
    • Publications
    • External Links
  • Careers
  • Contact Us