Cadillac Tax Delayed until 2020

On Friday, December 18, 2015 President Obama signed an appropriations bill that included a delay in implementation of the excise tax on high cost health plans (Cadillac Tax) and making the tax a deductible expense for tax purposes.   The delay moved  the effective date from 2018 to 2020.  This is welcome news for the benefit industry as many employers were beginning to feel the pressure of changing their benefit plan designs now for their employees.

 This delay will allow employers  more time to formulate a benefit strategy into the future and additional time to advocate for the repeal of the tax or an exemption of the Health FSA and Health Savings Account benefits.