Congress passed Bipartisan Legislation that Repeals Three Major ACA Taxes and Extends PCORI

Healthcare Worker Holding Sign that Says Affordable Care Act

Over the weekend the President signed the Bipartisan Legislation passed earlier in the week by Congress. Referred to as the Further Consolidated Appropriations Acts 2020 (The Act), the legislation avoided a government shutdown and contained repeals of three major Affordable Care Act taxes:

  • The tax on high-cost health plans, known as  The Cadillac Tax, which had previously been delayed until 2022;
  • The Health Insurance Tax (HIT Tax) which was to be effective January 1, 2021;
  • The Medical Device Tax, which would have been effective January 1, 2020.

In addition, the passed legislation included the extension of the Patient Centered Outcomes Research Institute Fee (PCORI). The fee has now been extended to plans years ending on or before September 30, 2029.