Government Funding Bill Impacts Employer-Sponsored Coverage

Healthcare Reform
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Yesterday, Congress voted to pass H.R. 195, a bill that will continue to fund the government through February 8, 2018. The bill was signed by the President last night and it includes three items specific to the Affordable Care Act, two of which will impact employer-sponsored coverage directly: 

 1. The Cadillac Tax is delayed for an additional two years to 2022.
2. A moratorium of the Health Insurance Tax (HIT), effective for 2019.
3. A two-year extension on the moratorium on Medical Device Excise Tax.

The delay in the Cadillac Tax is a big win for employer-sponsored coverage as the 2020 effective date was getting closer and many employers were still trying to understand how best to prepare.  The Health Insurance Tax came back this year and fully insured companies saw that increase in premium.  The moratorium included in this bill should be a positive impact when looking at 2019 renewals.

As always, we will continue to monitor what is going on in Washington and keep our clients updated with the latest news.