Health Insurance Tax – Medical Device Tax – Cadillac Tax Continuing Resolution Passed January 22, 2018

Contact: Bradley R. Blackham 

1. Two-year delay of the Cadillac Tax on health insurance plans, from 2020 to 2022

  • The Cadillac Tax will impose an annual 40 percent excise tax on plans with annual premiums exceeding $10,800 for individuals or $29,500 for a family.
  • Some higher thresholds for employees in high-risk occupations, and the thresholds are indexed so even if it is effective in 2022 it’s likely the thresholds will be higher than those stated above.

2. One-year suspension of the health insurance tax (HIT)

  • The HIT tax was already suspended in 2017 and was just reinstated in 2018.
  • The one-year suspension in the CR means the tax is now suspended for 2019.
  • Insured rates for 2018 are already in effect and already include the HIT tax for 2018 (insurers usually added 3-5% for this tax). It’s unclear whether insurers will return the additional amount to employers or employees (or neither) now that the HIT tax is suspended for 2019.

3. Two-year suspension of the medical device tax

  • This has already been in effect, so should be suspended for 2018 and 2019.

When you need a healthcare industry lawyer in Utah.

Our healthcare lawyers are ready to help.  For questions about this blog post, or about the healthcare services SCM provides, contact  Bradley R. Blackham.

Utah Business Attorney Bradley Blackham

Bradley R. Blackham