Kilpatrick Townsend

ACA Taxes to be Repealed, PCORI Extended

The House of Representatives has approved must pass spending legislation, sending it to the Senate for a vote on Thursday or Friday.  The President has already indicated that he will sign the legislation.  The Consolidated Spending Bill  includes the following ACA-related provisions –  

  • Eliminates the Cadillac Tax by removing IRC Section 4980I.
  • Eliminates the Medical Device Tax of 2.3% by removing IRC Section 4191.
  • Eliminates the annual fee on health insurance providers be removing ACA Section 9010.   

All provisions are scheduled to be effective January 1, 2020, except that the removal of the health insurance provider annual fee is to be effective January 1, 2021. 

 

The Bill also extends the PCORI fee for ten years.