In late March 2017, Republican leadership in the U.S. House of Representatives withdrew the American Health Care Act (AHCA) and were unsuccessful at replacing and repealing the Affordable Care Act (ACA).
Because the House was unable to pass the AHCA, the ACA remains current law, and employers must continue to comply with all applicable ACA provisions.
While the future of the ACA as a whole is currently unclear, some definitive changes have been made to some ACA taxes and fees for 2017. Employers should be aware of the evolving applicability of existing ACA taxes and fees so that they know how the ACA affects their bottom lines.
Changes to ACA Taxes
A federal budget bill enacted for 2016 made the following significant changes to three ACA tax provisions:
- Delayed implementation of the ACA’s Cadillac tax for two years, until 2020
- Imposed a one-year moratorium on the ACA’s health insurance providers fee for 2017
- Imposed a two-year moratorium on the ACA’s medical device excise tax for 2016 and 2017
Changes to ACA Fees
In addition, the ACA’s reinsurance fees expired after 2016, although the 2016 fees will be paid in 2017. Reinsurance fees may be paid in either one lump sum or in two installments. Reinsurance fees paid in one lump sum were due in full on Jan. 15, 2017. Reinsurance fees paid in two installments are due as follows:
- Jan. 15, 2017: Remit the first contribution amount of $21.60 per covered life.
- Nov. 15, 2017: Remit the second contribution amount of $5.40 per covered life.