Spending bill suspends 3 Obamacare taxes
The short-term spending bill that President Trump signed into law Monday night includes provisions that delay or suspend three taxes mandated by the Affordable Care Act that have not yet taken effect.
The continuing resolution extends the moratorium on the excise tax on medical device from Dec. 31, 2017 until Dec. 31, 2019. Implementation of the so-called “Cadillac tax” on high-cost employer-sponsored health coverage has been delayed from Dec. 31, 2019 until Dec. 31, 2021. An annual fee on health insurance providers has been suspended until 2019.
The actions come after Republicans in Congress included a provision in the Tax Cuts and Jobs Act last month that would repeal the individual mandate in the Affordable Care Act requiring individuals to buy health insurance coverage.
“After repealing the individual mandate in the Tax Cuts and Jobs Act, the action we took this week will provide even more relief from Obamacare,” said House Ways and Means Committee Chairman Kevin Brady, R-Texas, in a statement. “These taxes have long been seen as some of the most damaging taxes for families, workers, and our economy. By preventing these taxes from going into effect, this law will help lower premiums for families and give employees peace of mind that they can still get the insurance they have through work. And it will boost job creation and medical innovation.”
The short-term spending bill temporarily extends government funding until Feb. 8, 2018, and renews the popular Children’s Health Insurance Program, or CHIP, for another six years after it expired last fall. The bill ends a three-day government shutdown, giving Democrats and Republicans in Congress and the Trump administration a little extra time to negotiate a deal on immigration issues such as the Deferred Action for Childhood Arrivals, or DACA, program, which is set to end in March, along with possible funding for President Trump’s wall on the Mexican border.