The Higher Ed Workplace Blog

Cadillac Tax Delayed Two Additional Years as Senate Agrees to a Vote on a DACA Fix With Next Government Funding Bill

On January 22, after a three-day shutdown of the federal government, Congress passed and President Trump signed into law a short-term continuing resolution (CR) to fund the government until February 8. Included in the CR was a two-year delay to the Affordable Care Act (ACA)’s 40 percent excise tax on high-value healthcare plans, known as the “Cadillac tax.”

This delays the Cadillac tax from taking effect until 2022, rather than 2020. The ACA originally called for the tax to take effect in 2018, but delays and even full repeal of the Cadillac tax are supported by members of both political parties. The CR also included a two-year delay of the ACA’s medical device tax, a one-year delay of the ACA’s health insurance fee, and a six-year reauthorization of the Children’s Health Insurance Program.

As a condition of their agreement to this short-term CR, Senate Democrats secured a promise from Senate Republican leaders to take up legislation that would address the Deferred Action for Childhood Arrivals (DACA) program, border security and other immigration matters.

CUPA-HR has long supported not only a delay but a repeal of the Cadillac tax since the ACA was signed into law. We also support the DACA program and an urgent fix by Congress. We will continue to support legislation to further delay or repeal the Cadillac tax moving forward, as well as legislation to permanently protect individuals in the DACA program.