Congress Delays Cadillac Tax and Health Insurance Tax

January 23, 2018



Earlier today, Congress voted to pass H.R. 195, a bill that would continue to fund the government through February 8, 2018. It includes two major legislative victories for NAHU: delaying the Cadillac/Excise Tax until 2022 and implementing a moratorium of the Health Insurance Tax (HIT), effective for 2019. The bill is expected to be quickly signed by President Trump in order to restore full government operations tomorrow.

NAHU offered support of an early version of the bill by submitting a letter to leadership last week. NAHU has long advocated for Congress to include further delays or permanent repeals of these taxes and was a leading advocate for their earlier delays in 2015. In addition to the Cadillac Tax and HIT, the package implements a two-year delay of the Medical Device Tax.


The package also includes renewing funding over six years for the Children's Health Insurance Program (CHIP), which lapsed at the end of September. The program provides health insurance coverage for more than 8 million children and was last reauthorized in 2015 as part of Medicare payment reform that repealed the sustainable growth rate (SGR) formula.

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