Dec 19, 2019
Congress passed an end-of-year spending bill, which includes a permanent repeal of two very unpopular ACA taxes: the Cadillac tax on high-cost health plans and the health insurance tax (HIT) on fully insured health plans. The spending bill is expected to be signed into law.
The Cadillac tax, which has been delayed twice, is a 40 percent excise tax on the cost of employer health plans above annual cost thresholds. The Health Insurance Tax (HIT) is essentially a sales tax on health insurers, which has been suspended since 2017.
The Congressional Budget Office estimates that repealing the Cadillac Tax will save consumers $197 billion while repealing the HIT will save $150 billion.
