In a rare bi-partisan move, just before the Christmas break Congress passed a spending bill for 2020 that included a repeal of the so-called Cadillac tax. The tax, which was an excise tax on costly health plans, was due to go into effect on January 1, 2022, after a number of delays as to its effective date in the face of objections from states where health insurance is most expensive, including Connecticut. The bill was signed by the President on December 20, 2019.
Part of the Obama era Affordable Care Act, the tax would have charged health plans 40% of the cost of the plan above certain thresholds. Employers across the country, but particularly in the Northeast and California were bracing for the tax, and implementing changes to health plans to circumvent or minimize its impact, including, shifting more costs to employees. The repeal appears to close the book on the dreaded tax once and for all.
The Labor and Employment attorneys at Berchem Moses PC can assist you with any labor and employment compliance issues you may have.