High-Cost Excise Tax

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High-Cost Excise Tax


High-Cost Excise Tax - Cadillac

Under the Affordable Care Act starting in 2018, a tax on insurance companies that provide high-cost plans. This tax encourages streamlining of health plans to make premiums more affordable.

Commonly referred to as the "Cadillac" tax.

• In December 2015, Congress delayed implementation of the so-called Cadillac tax, a 40 percent excise tax on high-cost employer health benefit plans. It is not scheduled to go into effect until 2020.

• The Cadillac tax would effectively cap the current tax exclusion for employer health benefits.

January 25, 2018 - Congress passed a spending bill that includes a provision suspending the Cadillac tax.

July 17, 2019 - The House voted 419 to 6 to repeal the Cadillac tax.