Cadillac Tax Repealed

The Cadillac tax, which would have imposed a 40 percent excise tax on employer-sponsored health benefits whose value exceeds certain thresholds beginning in 2022, has been repealed.

The 40 percent excise tax would have been imposed on plan administrators and insurers when the cost of employer-sponsored health coverage exceeds $11,200 for single coverage and $30,150 for family coverage for plans beginning in 2022.

The tax was delayed twice: in 2015 and 2018. It was repealed as part of the fiscal year 2020 appropriations legislation passed in 2019.