Corporate Services, Inc.
208 Kishwaukee St. · Rockford, IL 61104
(p) (815) 962-8367 · (f) (815) 962-0940

Congress Kills Cadillac Tax: What's Next for ACA?


When the House and Senate approved a short-term government spending bill, the major story was how it ended a government shutdown. But for human resources professionals, there is another story tucked away in the legislation.

That story is all about the provisions included in the short-term government spending bill that would delay and stop key provisions of the Affordable Care Act (ACA).

The provision employers will be most interested in is a delay of the ACA's Cadillac tax until 2022 — currently slated to take effect in 2020.

As human resources professionals are only too aware, the ACA's so-called "Cadillac Tax" will impose a 40% non-deductible excise tax on the value of health insurance plans exceeding $10,200 for individuals and $27,500 for family coverage.

Medical device, HIT tax on hold, too

The spending bill also stops the ACA's 2.3% medical device tax for this year as well as 2019. Plus, it freezes the health insurance tax or "HIT" tax for 2019.

Yes, this bill is only meant to be a temporary stopgap measure and the entire bill is highly unlikely to remain the same as it is currently written.

However, employers should still be encouraged by the ACA changes included in the bill. Reason: Their approval suggests Congress can have success dismantling other unpopular ACA provisions in a similar manner.

Republicans may continue adding other ACA changes in future must-pass legislation. One example experts foresee: a provision to end the current ACA restrictions on health savings accounts (HSAs).

Posted In: Congressional Activity; Affordable Care Act (ACA)

Want to know more? Read the full article by Jared Bilski at HR Morning

More News from Corporate Services, Inc.

Three Schemes Targeting Human Resources Professionals

In recent months, a number of federal agencies — including the Federal Bureau of Investigation (FBI) and Internal Revenue Service (IRS) — are warning employers about new scams targeting employees' direct deposit, W-2 and I-9 information. And these scams have wreaked havoc on scores of companies.more

Moonlighting While on FMLA Leave

May an employer require an employee taking leave under the Family and Medical Leave Act (FMLA) return to work after the employee was seen working his second job — refereeing school basketball games — while on leave? In this particular case, the employee was taking FMLA leave to care for his daughter, who had a serious health condition.more

Nearly a Third of Companies Will Pass Tax Law Savings to Staffers

Human resources professionals have seen plenty of news stories about giant corporations that are passing along the savings from the new tax law to their employees. But until now, it has been tough to get a picture of the number of employers that are actually going to make such a move.more