3 U.S. health-related taxes repealed

By DrBicuspid.com staff writers

December 23, 2019 -- The U.S. Congress passed a $1.4 trillion spending package on December 17 that repealed three taxes, including one on medical devices imposed under the Patient Protection and Affordable Care Act. President Donald Trump signed the measure into law on December 20.

The law permanently repeals a 2.3% tax on medical devices. Manufacturers, producers, or importers pay the taxes on medical devices. The tax was scheduled for resurrection in January 2020 after it was suspended for two years in early 2018.

The law also repeals the "Cadillac" tax on employer health plans, which was to take effect in 2022. If not repealed, the tax would have applied to employer-sponsored health plans that cost more than $10,200 for individuals and $27,500 for families. The rate is set at 40% of coverage costs that exceed those thresholds and would be adjusted annually for inflation.

Additionally, an annual fee imposed on health insurance providers was repealed, and the minimum age of sale for tobacco products was raised to 21 years.

Copyright © 2019 DrBicuspid.com

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