Congress looks to postpone two ACA taxes

As it winds up its business for the year, Congress is poised to suspend two Affordable Care Act taxes for two years (Source: “Congress to suspend two Obamacare taxes,” Cleveland Plain Dealer, Dec. 16, 2015).

The first tax likely to be suspended is a 2.3 percent tax on medical devices, which was set to go into effect in 2016 but would be postponed until 2018.

Additionally, the late-year spending deal hammered out by Republicans and Democrats and announced late Tuesday will delay for two years the imposition of the so-called Cadillac tax on high-value health plans. This tax was to be collected starting in 2018 from companies and insurers, some of whom would likely pass it on to workers, if they provided health insurance policies with extensive coverage.

The 40 percent tax would be owed on the excess value of policies once the cost hit $10,200 for an individual and $27,500 for a family. The thresholds would rise with inflation after 2018.