Healthcare Reform Updates

Cadillac Tax Delayed Until 2022

What: On January 22, 2018, Congress passed and President Trump signed into law a two-year delay on the Affordable Care Act's 40 percent excise tax on high-cost employer-sponsored health coverage known as the Cadillac tax.

When: The Cadillac tax, was previously set to become effective in 2020. With the extension, this has been delayed until 2022. 

Who: The Cadillac tax will generally apply to the monthly cost of an employee's employer-sponsored health coverage that exceeds a threshold amount specified in the law. Generally, for insured coverage, the insurer is responsible for paying the tax. For self-insured coverage, the employer will be responsible for the tax. 

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