When Congress approved a temporary spending bill to re-open the government Tuesday, it also extended a moratorium on three controversial healthcare taxes.
The continuing resolution extended the moratorium on the 2.3 percent tax on medical devices and the Health Insurance Tax (HIT), which took effect Jan. 1, and the 40 percent excise tax on high cost employer-sponsored healthcare plans, which was scheduled for 2020. In all, the spending bill cuts $31 billion in new taxes over the next five years, according to the Joint Committee on Taxation.
The taxes were originally included in the Affordable Care Act but had been suspended by Congress.
The so-called Cadillac tax on high cost health plans set thresholds at $10,200 for single coverage and $27,500 for family coverage in 2018 dollars, meaning any health premiums above those amounts would have been taxed at 40 percent.