On December 20, 2019, spending legislation was enacted which contains provisions affecting group health plans.  This legislation is comprised of the Consolidated Appropriations Act and the Further Consolidated Appropriations Act.  These Acts repeal three Affordable Care Act taxes but also extend the Patient Centered Outcomes Research Institute (PCORI) fees. 

The three repealed taxes include:

• The Cadillac tax – a 40% excise tax on high-cost health plans
• The Health Insurance Providers Fee for calendar years starting after December 31, 2020
• The medical device tax for sales after December 31, 2019

The Cadillac tax was scheduled to go into effect on January 1, 2022 after a number of delays.  The medical device tax has been suspended since 2016 but was scheduled to go into effect in 2020.  These taxes have now been permanently repealed.  The health insurance providers fee began in 2014 but had been suspended for 2017 and 2019.  The fee returned for 2020 but is now repealed for 2021 and all future years.

PCORI fees had been in effect for plan years ending prior to September 30, 2019 and the seven years prior.  This fee has been reauthorized for another 10 years and applies to all self-insured group health plans and health insurers.