When the House approved a short-term government spending bill, the major story was how it ended a government shutdown. But for HR pros, there’s another story tucked away in the legislation.

That story is all about the provisions included in the short-term government spending bill that would delay and stop key ACA provisions.

The provision employers will be most interested in is a delay of the ACA’s Cadillac tax until 2022. It’s currently slated to take effect in 2020.

As HR pros are only to aware, the ACA’s so-called “Cadillac Tax” will impose a 40% non-deductible excise tax on the value of health insurance plans exceeding $10,200 for individuals and $27,500 for family coverage.

As written, the spending bill would also stop the ACA’s 2.3% medical device tax for this year as well as 2019. Plus, it would freeze the health insurance tax or “HIT” tax for 2019.

A preview of what’s to come

Granted, this bill is only meant to be a temporary stopgap measure and is highly unlikely to remain the same as its currently written.

However, employers should still be encouraged by the ACA changes included in the bill.

Reason: Their approval by the House suggests these delays could well be enacted permanently in the near future.

Republicans may also continue to try adding other ACA changes in future must-pass legislation.
One example experts foresee: a provision to end the current ACA restrictions on health savings accounts (HSAs).

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