There have been further delays in the implementation of ACA (Affordable Care Act), otherwise known as Obamacare. HealthPartners was kind enough to provide us a list of those particular items that impact the cost of insurance.
"Here are a few legislative changes that took place in December that may impact your business. We pulled out the notable highlights for you in a summary below. Congress passed the changes as part of the Consolidated Appropriations Act and was signed into law by President Obama.
1) Health insurance premium tax delay
Known to some as the "Health insurance industry fee" or the "Health insurer tax", the insurer premium tax is suspended for one year. The tax applies to fully insured plans.
2 Cadillac tax delay
The Cadillac tax (also known as the excise tax) was scheduled to take effect in 2018. The tax would apply to certain high-cost, employer-sponsored health plans. New legislation pushes the effective date of the Cadillac tax out two years from 2018 to 2020.
There are unanswered questions and challenges that both regulators and Congress face in trying to effectively implement this excise tax. A new provision shows the tax would be a deductible expense to the entity paying the tax. In addition, other details about the tax are being reviewed and a full repeal is still a possibility.
3) Medical device excise tax
This 2.3 percent tax on medical devices was originally implemented in 2013. It will be suspended for two years and is scheduled to restart in 2018."
We'll continue to update you as more information becomes available. You can contact us with any questions you may have.
