Congress Delivers More Relief From Burdensome Taxes We provide informative articles and topics that focus on information for businesses of all types. Recent blogs to check out: • How to Fix 3 Accounting Problems • Cadillac Tax, HIT Tax, Medical Device Tax, and CHIP Extension • Employer Update for the Health Insurance Marketplace Take a look below to see a sneak peak of one of this month’s blog topics! CADILLAC TAX DELAYED AGAIN UNTIL 2022
Children’s Health Insurance Plans (CHIP) The CHIP program helps families with children who are caught between Medicaid and unaffordable private insurance.This much-needed safety net has been funded for the next six years, providing certainty to state CHIP programs and peace of mind for CHIP families. Health Insurance Fee The annual fee levied on health insurance is paid by insurance providers, and it drove up monthly premiums while making health insurance more expensive for everyone.The health insurance fee will not be applicable for 2019. It is set to reappear in 2020. Medical Device Excise Tax The manufacturers of medical devices such as pacemakers also paid an excise tax on their products.This excise tax drives up the cost of medical devices and perhaps hinders development of new products. Again, as with the Cadillac tax and health insurance fee, this 2.3 percent excise tax on medical devices was delayed until 2020, but not eliminated. This article recently appeared on the Professional Liability Insurance Group’s blog. For more great resources and insight from Shayne Bevilacqua, be sure to visit protectusbetter.com/blog .
Benefits were the real winner in the stopgap government funding bill HR 195. On Jan. 22, 2018, President Trump signed into law a continuing resolution that included major health care priorities, including one in particular that many health care advocates have been working on as one of their top advocacy points. Cadillac Tax The so-called “Cadillac tax” will levy a 40 percent tax on the value of the employer-sponsored insurance that exceeds a certain threshold. Unfortunately, the calculation of the threshold includes employee contributions to health flexible spending accounts (FSAs) and health savings accounts (HSAs). It also hands over the onerous task to employers of calculating overages on a per-employee basis for all benefits offered and then allocating and collecting the taxes from their various benefits providers and administrators. Originally slated to begin operation in 2018, previous legislation delayed this tax until 2020. HR 195 provides relief for an additional two years, delaying implementation of this excise tax until 2022. Professional Liability Insurance Group applauds the delay afforded to employers and employees alike. Nevertheless, despite the four-year respite, advocates continue to lobby for full and permanent repeal of this burdensome and expensive provision — or at the very least, an exclusion from the threshold of employee contributions to health FSAs and HSAs.
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3 Professional Liability Insurance Group • www.ProtectUsBetter.com
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