Compliance HCR Alert: Cadillac Plan Tax Officially DELAYED

The Cadillac Plan tax is a 40% non-deductible excise tax on the value of employer-sponsored health insurance coverage that exceeds $10,200 for self-only coverage and $27,500 for coverage other than self-only (e.g., family coverage).  It has been officially delayed for two years (until January 1, 2020). 

Additionally, the following have been approved:

  • Permits a tax deduction on any assessment of the Cadillac Plan tax under the Tax Code.
  • Authorizes a study of the age and gender adjustment benchmarks related to the Cadillac Plan tax.
  • Suspends the medical device excise tax for two years and the annual fee on health insurance providers (the Health Insurer Tax) for one-year.
  • Delays the Health Insurer Tax for one year.
  • Extends parity between mass transit and parking benefits under Code section 132(f) – $255 a month in 2016

For a copy of the signed bill, visit:

Consolidated Appropriations Act of 2016
http://docs.house.gov/billsthisweek/20151214/CPRT-114-HPRT-RU00-SAHR2029-AMNT1final.pdf

Protecting Americans from Tax Hikes Act of 2015 http://docs.house.gov/billsthisweek/20151214/121515.250_xml.pdf

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