On December 15, 2015 the House introduced the “Consolidated Appropriations Act, 2016”, a bill that among other things, would delay the effective date of the Cadillac Tax provision of the Affordable Care Act. This bill is the latest in a line of proposed legislation drafted in an attempt to repeal this tax. To summarize, this bill would:
- Delay the Cadillac Tax by two years
- Make this excise tax tax-deducible (remember that as enacted it is non-deductible)
- Call for study on what the appropriate benchmark for the “age and gender” adjustment should be.
Additionally, and also pertinent to the healthcare and insurance arena, this bill includes a one-year delay for the annual excise tax on insurance carriers and a two-year delay of the medical device tax.
The entire bill can be found HERE. The Cadillac Tax provisions show up on page 2000 (out of 2009).
Industry experts suggest this bill, seeking a delay instead of a total repeal of this tax, may have more legs than previous legislation concerning the same topic. It remains to be seen if this bill will garner enough support to push through, causing the Cadillac Tax to come to a screeching halt for two more years, or if it will just keep on cruising in to 2018.
Stay tuned for updates when we have any further details.