The recently signed 2020 spending bill repeals these three Affordable Care Act (ACA) related taxes:
- The 40% “Cadillac” tax on high-cost employer provided health coverage
- 3% excise tax on medical devices
- Health Insurance Tax (HIT) on fully insured plans
The health insurance tax (HIT) remains in place in 2020, with a scheduled repeal in 2021, while the Cadillac tax and the medical device tax were both repealed beginning 2020.
PCORI fee extended
In addition to the ACA related tax repeal, the 2020 spending bill includes an extension of the annual Patient-Centered Outcomes Research Institute (PCORI) fee. The PCORI fee was established as part of the ACA to fund medical research. Insurers and self-funded plans are subject to the fee. The last PCORI fee payment was expected to occur on July 31, 2020 (for non-calendar year plans) but is now extended another 10 years.