On January 22nd, 2018, President Trump signed a stopgap funding bill that delayed the implementation of the ‘Cadillac Tax’. This new law has officially delayed the Cadillac Tax until 2022.
A provision of the Affordable Care Act (“ACA”), the so-called “Cadillac Tax” is a 40% excise tax to be imposed on high-cost employer-sponsored group health plans. The tax is expected to impact at least 1 in 4 employers. Self-insured employers are expected to pay the tax directly while insurance carriers will be responsible for the tax on fully insured plans.