web
You’re offline. This is a read only version of the page.
close
Go tothe  Vita Companies Home Page
  • Solutions
    • Employee Benefits
    • COBRA
    • Pre-Tax Administration
    • Retirement
    • Global Benefits
  • Resources
    • Coronavirus Resources
    • Help Center
    • Blog
    • Webinars
    • Compliance Calendar
    • Employer HIPAA Training
    • Pre-Tax Resources
  • About
    • About Vita
    • Leadership Team
    • Vita Culture
    • Giving Back
    • Careers
  • Login
  • Contact Us
        • All
        • Blogs
  • Your Employee Benefits Partner
  • Blogs
  • The Vita Blog
  • December 2019

The Vita Blog December 2019

  1. ACA PCORI Fee Extended to 2029

    System Administrator – Tue, 24 Dec 2019 06:57:05 GMT – 0

    PCORI Fee Extension

    The Patient-Centered Outcomes Research Institute (PCORI) fee is extended to 2029. The PCORI fee was initially applied from 2012 to 2019. The fee started at $1.00 per covered life in the first year that the fee was in effect and increased based on a COLA factor since. Most recently, for plan years that ended on or after October 1, 2018, and before October 1, 2019, the indexed fee was $2.45. 

    New PCORI Fee not Released

    The IRS has not released the indexed fee for plan years that end on or after October 1, 2019, and before October 1, 2020, or for subsequent plan years. Stay tuned for details on the specific PCORI fee. 

  2. Three ACA Taxes Repealed

    System Administrator – Tue, 24 Dec 2019 02:07:59 GMT – 0

    The week of December 16, 2019, Congress passed two year-end spending agreements to fund the federal government until Sept. 30, 2020 (H.R. 1158 and H.R. 1865) and President Trump signed them into law.  One of the agreements, H.R. 1865 (the Further Consolidated Appropriations Act of 2020), included a full repeal of three taxes originally imposed by the ACA:

    1. Cadillac Tax
    2. Health Insurance Industry Fee (aka. Health Insurer Tax)
    3. Medical Device Tax

    Cadillac Tax

    The Cadillac Tax would have imposed a 40% excise tax on coverage on high-cost employer-sponsored health insurance. When originally enacted in the ACA, the thresholds were $10,200 for self-only and $27,500 for family coverage with a 2018 effective date.

    In early December, more than 1,000 employers, insurers, unions and other organizations urged Senate leaders to scrap the Cadillac tax, which was set to go into effect in 2022.

    The Cadillac Tax was delayed multiple times since passage of the ACA, and is now fully repealed, meaning it no longer exists and will never take effect.

    Health Insurer Tax

    H.R. 1865 also fully repeals the Health Insurer Tax, beginning in 2021. The $8 billion fee was implemented in 2014 and continued to increase each year. The fee only applied to insured plans (not self-funded plans) and was based on each insurer’s share of the taxable health insurance premium base.

    Due to the adverse impact on health insurance premiums, the fee was suspended in 2017 and 2019. It is important to note that the fee will be in effect for 2020 as no suspension was granted for that year.  Then, it will be fully repealed effective 2021.

    Medical Device Tax

    The Medical Device Tax imposed a 2.3% excise tax on U.S. medical device revenues. The tax was in effect from 2013 through 2015.  It was then suspended from 2016 through 2019. H.R. 1865 fully repeals the tax, effective Dec. 31, 2019.

    Things Left Out

    Compromise legislation to address surprise medical bills and a major drug-pricing package were left out of the year-end package. Lawmakers delayed long-term action on funding expiration for several healthcare priorities until May 22, which provides another potential vehicle for those larger packages.

     

  • ‹ Newer
  • Older ›

The Vita Blog

Options

Blog Home Feed

Archive

September 2023 6 June 2023 2 May 2023 5 April 2023 7 March 2023 1 February 2023 5 January 2023 1 November 2022 1 October 2022 1 September 2022 1 August 2022 3 May 2022 2 March 2022 1 February 2022 3 January 2022 1 December 2021 1 November 2021 2 September 2021 1 August 2021 1 July 2021 1 June 2021 2 May 2021 2 April 2021 1 March 2021 3 February 2021 1 December 2020 3 November 2020 3 October 2020 2 September 2020 1 June 2020 3 May 2020 1 April 2020 2 March 2020 3 February 2020 1 December 2019 2 November 2019 2 October 2019 2 September 2019 1 August 2019 1 July 2019 1 June 2019 2 March 2019 2 February 2019 1 December 2018 1 November 2018 4 October 2018 3 August 2018 2 May 2018 1 April 2018 3 March 2018 4 February 2018 5 January 2018 6 December 2017 2 November 2017 1 October 2017 3 September 2017 2 August 2017 2 July 2017 2 May 2017 1 March 2017 1 February 2017 4 January 2017 4 November 2016 4 October 2016 1 September 2016 4 July 2016 2 May 2016 2 April 2016 1 March 2016 2 February 2016 3 September 2015 1 August 2015 1 June 2015 2 March 2015 1 February 2015 1 January 2015 1 November 2014 1 September 2014 1
  • Vita

    • 1451 Grant Road, Suite 200
    • Mountain View, CA 94040
    • (650) 966-1492
  • Solutions

    • Employee Benefits
    • COBRA
    • Pre-Tax Administration
    • Retirement
    • Global Benefits
  • Resources

    • Coronavirus Resources
    • Help Center
    • Blog
    • Webinars
    • Compliance Calendar
    • Pre-Tax Resources

Privacy Policy | Form ADV Part 2A | Insurance offered through Vita Insurance Associates, Inc. (CA Insurance License #0581175 | DBA Vita Companies)

Investment advisory services offered through Vita Planning Group LLC, a Registered Investment Advisor with the SEC.

Check the background of your financial professional on FINRA'S BROKERCHECK

This site is published for residents of the United States only. Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every advisor listed.

Vita Planning Group LLC understands and attests that they are an ERISA fiduciary as defined in the Fiduciary Rule under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986. Vita Planning Group LLC adheres to the Impartial Conduct Standards (including the “best interest” standard, reasonable compensation and no misrepresented information). This relates to all ERISA accounts including Individual Retirement Accounts (IRAs).

BrokerCheck by FINRA

Copyright © 2023 Vita Insurance Associates, Inc. All Rights Reserved. | Privacy Policy