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Affordable Care Act’s Cadillac Tax delayed until 2022

ACA icon1 min read

In December 2015, President Obama passed a two-year delay on the Affordable Care Act’s excise tax known as the “Cadillac Tax.” This pushed the tax to take effect in 2020 instead of 2018. On January 22, 2018, President Trump signed another two-year delay on the tax to push that date to 2022. The Cadillac Tax is the ACA’s 40% excise tax on high-value healthcare plans.

This tax delay, "is an acknowledgement by Congress of the importance of employer-sponsored health insurance, which provides benefits to over 178 million Americans and their families," said Chatrane Birbal, senior advisor of government relations at SHRM. For many, the delay is one small step toward victory in repealing the tax altogether.