House Approves Spending Package (Updated 12/18/2015 10:30 AM)
The United States year-end budget passed the House, which contained a number of provisions one of which has one that will delay the implementation of the “Cadillac Tax” by 2 years or until 2020. The way the “Cadillac Tax” works is that companies whose health plans are deemed generous will be required to pay a 40% excise tax on their plans. In other words, companies will have to pay the tax on health coverage costs that exceed threshold amounts, which was scheduled for 2018 to be $10,200 for an individual and $27,500 for families. The purpose of the “Cadillac Tax” was to assist in raising funds to help support the Affordable Care Act (ACA). Now that this tax has been delayed by 2 years its impact on the ACA is up in the air.
The Bill will still need to pass the Senate and then be signed by the President, so whether or not the delay will come to fruition will be determined in the next couple of days.
Stay tuned to the blog for updates as they occur.
Senate Approves Spending Package (Updated 12/18/2015 12:00 PM)
After being approved by the House, the $1.8 trillion spending package was sent to the Senate where is was easily passed. The bill will now be sent to President Obama for his signature.
We will keep you updated on President Obama’s action.
Obama Signs Legislative Spending Package (Updated 12/21/2015 8:00 AM)
Late Friday afternoon President Obama signed the legislative spending package approved by the House and the Senate. This means that the "Cadillac Tax" has been officially delayed two years and will not come into effect until 2020.