Short-Term Spending Bill Delays Cadillac Tax & Other ACA Taxes
On January 22, 2018, President Trump signed H.R. 195: Extension of Continuing Appropriations Act, 2018, which is a short-term spending bill that re-opened the federal government after a three-day shut-down. As discussed below, the bill:
- Extends the Children’s Health Insurance Program (CHIP) for six years, through fiscal year 2023;
- Extends the existing suspensions of the Affordable Care Act’s (ACA) medical device excise tax through 2019 and the tax on high cost employer-sponsored health coverage (the “Cadillac Tax”) through 2021; and
- Suspends the annual fee on health insurance providers for 2019.
No other changes were made to the ACA as part of this bill. Last month, as part of the Tax Reform and Jobs Act, the individual mandate penalty was reduced to $0 beginning in 2019.