On January 22, 2018, the U.S. Congress voted to pass a bill that would continue to fund the government through February 8, 2018. President Trump signed the bill today, January 23, 2018. In addition to continuing government funding, the bill also includes two legislative victories for employers: delaying the Cadillac Tax until 2022 and instituting a moratorium of the Health Insurance Tax (HIT), effective for 2019.
If you recall, the Cadillac Tax refers to a provision in the ACA imposing an annual 40% excise tax on plans with annual premiums exceeding 10,800 for individuals or $29,500 for a family starting in 2020. This bill, effectively delays the Cadillac Tax for an additional two years. The Health Insurance Tax (HIT) included in the ACA increase the cost of healthcare coverage for consumers and employers in each state and is intended to impose a sales tax on health insurance to increase tax revenue. You may recall that in 2015, Congress approved a one-year moratorium on collecting this tax for 2017. The moratorium was set to lapse in 2018, however with this bill, a moratorium has been put in place, effective for 2019.
Innovative has been active in lobbying for employer friendly changes to the Affordable Care Act for many years. The Health Insurance Tax and Cadillac Tax have been major discussion points with NJ/PA Congress and Senate members. Innovative is looking forward to attending the National Association of Healthcare Underwriters (NAHU)’s 28th Annual Capitol Conference next month. At this conference, Innovative has an opportunity to hear from and speak with legislators around the country on these important topics. We hope to discuss a greater effort to stabilize the individual market and a number of measures to improve employer sponsored coverage for our clients.
After our visit, we hope that you will join us for our annual Update from the Hill, Lunch N’ Learn, on March 14, 2018, where we will discuss the legislative dynamic and culture of the current administration and how it affects you and your business. We will be live tweeting from the conference, so be sure to add us on Twitter – @Inno_Bene_Plan.
