Industry Insights

Appropriations Act Makes ACA Changes for Insurers

January 2016
Author:  Thomas Wheeland

Thomas Wheeland

National Practice Leader

Tax

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The Consolidated Appropriations Act, signed into law in late December to fund the government through September 2016, amended several provisions of the Affordable Care Act (ACA). Here are some of the major changes affecting insurance providers:

  • The “Cadillac” excise tax, affecting high-cost employer-sponsored health coverage, now is scheduled to go into effect for tax years beginning after December 31, 2019 (a two-year delay).
  • The Cadillac tax also will now be deductible.
  • The annual fee on health insurance premiums for the 2017 calendar year has been suspended.

The ACA affects insurers in multiple ways. For more information on how legislative changes could affect your company, contact your BKD advisor.

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