Health Care Cadillac Tax Delayed Until 2022

The three week extension of the federal budget resolving the shutdown from January 19th through 22nd also contained a delay of the Cadillac Tax from 2020 to 2022. This two-year delay on the 40 percent excise tax on high-value health care plans—the so-called Cadillac tax—was part of the measure to restore funding to the federal government. Both political parties supported the provision to postpone the Cadillac tax from taking effect until 2022, instead of in 2020.