United Benefit Advisors Insight and Analysis Blog

President Signs Further Consolidated Appropriations Act, 2020

By Karen Hsu, Director of Compliance at United Benefit Advisors
  Jan 31, 2020 7:36:00 AM

On December 20, 2019, President Trump signed the Further Consolidated Appropriations Act, 2020 (Act) to keep the federal government running through September 2020. The Act significantly affects provisions under the Patient Protection and Affordable Care Act (ACA), largely though one fee extension and the repeal of three taxes.

Federal_Tax_Credit_FML_2020

The Act also included a one-year extension of the federal tax credit for employers that provide paid family and medical leave (FML) to their employees.

  • The Patient-Centered Outcomes Research Institute (PCORI) fee is extended to 2029.
  • The 40 percent excise tax on high-cost health insurance (“Cadillac tax”) is repealed.
  • The Health Insurance Provider (HIP) Fee is repealed as of January 1, 2021.
  • The medical device excise tax is repealed as of January 1, 2020.

Topics: FMLA, ACA, Consolidated Appropriations Act, compliance recap