Archived Insight | February 25, 2019

Bill to Repeal the Affordable Care Act’s Excise Tax on High-Cost Plans

A House bill (H.R. 748) to repeal the Affordable Care Act’s 40 percent excise tax on high-cost health plans, often referred to as the “Cadillac tax,” has been introduced by six representatives from both parties.

The 40 percent excise tax was initially scheduled to take effect in 2018. The effective date has been delayed twice. The most recent delay, to January 1, 2022, was part of last year’s Continuing Resolution to fund the federal government.

H.R. 748 would amend the Internal Revenue Code to permanently repeal the excise tax. At this time, the bill does not include any offsets for the projected federal revenue from the tax.

At the end of December 2018, the House of Representatives passed legislation to delay three Affordable Care Act taxes. The bill included a five-year delay of the medical device tax; a two-year delay of the health insurance premium tax; and one-year delay of the excise tax on high-cost plans. The Senate did not take action on this bill, and subsequent government funding bills enacted into law did not include these provisions. As Congress debates budget and appropriations bills later this year, it is possible that another delay in the excise tax could be passed.

Questions about the topic?

Get in touch.

Speak with Us

See more insights

Business Colleagues Collaborating On Digital Tablet In Office

PBGC Seeks to Expand SFA Reporting

PBGC proposes expanded annual reporting for SFA plans, including investment governance documents, meeting minutes and missing participant data.
Multi Ethnic Group Of Businesspeople Collaborating In The Office

Why Now Is a Great Time for Pension Plan De-Risking

See how funding objectives, plan maturity, cash flows and ALM studies can guide pension plan sponsors toward the right de-risking strategy.
Young Couple Going Over Financial Documents At Home

Final Rule on Healthcare Transparency in Coverage

Learn how the Transparency in Coverage final rule affects disclosure requirements, price comparison tools and implementation planning.

This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.