The House of Representatives along with the Senate passed two spending bills, H.R. 1158 and H.R. 1865, (a.k.a. the Further Consolidated Appropriations Act of 2020) which are expected to be signed by President Trump and take effect by year-end.
The bills include the following provisions related to employers’ group health plans and the Affordable Care Act (ACA):
- A 10-year extension of the PCORI fee. The fee was initially due to sunset in 2019 with last payment due in 2020. The extension applies through policy/plan years ending on or before September 30, 2029 with last payment due in 2030.
- A repeal of the following taxes:
- Medical Device Tax – repeal effective January 1, 2020
- Health Insurance Tax (HIT) – repeal effective January 1, 2021
- Cadillac Tax – multiple delays and the repeal results in this tax never taking effect
On a separate note, a federal court of appeals recently determined the ACA’s Individual Mandate to be unconstitutional and asked the lower court to decide whether other ACA provisions can stand. In the meantime, ACA provisions, including the Employer Mandate and Reporting requirements (i.e., Forms 1095 and 1094) are still applicable.
If you have questions or need help, please contact one of our benefit consultants.