Federal Budget and the Affordable Care Act

Maggie Ashworth January 07, 2016 at 14:02 PM
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Federal Budget and the Affordable Care Act

On December 18, 2015 a federal budget bill for 2016 was passed by U.S. Congress and signed by President Obama. This bill makes significant changes to three Affordable Care Act (ACA) Taxes, and THW Insurance wants to guarantee that our clients are informed on the matter. The federal budget bill immediately went into effect, causing a two-year delay of the ACA’s Cadillac Tax until 2020, temporarily suspending collection of the health insurance providers fee until 2017, and delaying the medical devices tax for 2016 and 2017.  The Cadillac Tax, a 40 percent excise tax on high-cost group health coverage, was originally intended to begin in 2013. The tax was proposed as an incentive for businesses to select more economical health insurance plans for employees, thus raising capital to fund other ACA provisions.  The tax was designed so that if / when an employer-sponsored health plan were to ex ...