On Dec. 18, 2015, the U.S. Congress passed a federal budget bill for 2016 that makes significant changes to three tax provisions under the Affordable Care Act (ACA). This federal budget bill would:
1. Delay implementation of the ACA’s Cadillac tax on high-cost group health coverage for two years, until 2020;
2. Impose a one-year moratorium on the collection of the ACA’s health insurance providers fee, for 2017; and
3. Impose a two-year moratorium on the ACA’s medical device excise tax, for 2016 and 2017.
President Obama is expected to sign this legislation into law shortly. The provisions affecting these three ACA taxes will take effect immediately, once the bill is enacted.
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