Kilpatrick

Industry News

2016 Omnibus Act Delays/Modifies Cadillac Tax, Pauses ACA Taxes

Today, President Obama signed the Consolidated Appropriations ACT, 2016. The tax and spending bill includes a number of provisions impacting the health insurance market. A summary of those provisions:

  • Delayed the Cadillac Tax until 2020. see text
  • Made the Cadillac Tax permanently deductible. see text
  • A requirement that the Comptroller (in conjunction with NAIC) study appropriate age and gender adjustments to Cadillac Tax premium thresholds and report findings within 18 months. see text
  • One year moratorium in 2017 on the ACA Health Insurance Providers Fee (an existing tax on health insurance premium to fund ACA). see text
  • Two year moratorium in 2016 & 2017 on the ACA Medical Device Tax (2.3% sales tax). see text
  • Extension of a measure to prohibit CMS from using external funds to pay Risk Corridor program obligations. This measure created a massive shortfall (87.6%) in payments for 2014 operations. see text
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