January 2018 | Vol. I, Issue 8 | Center for Health

This periodic e-newsletter is provided to keep conference benefits officers and other United Methodist Church (UMC) employer representatives informed about the Affordable Care Act (ACA) and evolving health care landscape—and the impact on you as an employer/plan sponsor. Please share this Health Care Reform Update with church administrators and others in your annual conference or organization. Contact Wespath Benefits and Investments at healthcare_reformupdate@wespath.org with article ideas or if you would like to share your organization’s experience in a future issue. Government Funding Bill—Impact on Health Care Provisions The Congressional deal approved on January 22, 2018, to end a brief government shutdown includes several provisions that impact three health care-related programs and taxes, including: Cadillac Tax—implementation postponed CHIP—funding approved Medical Devices Tax—delayed The stopgap spending deal funds federal government operations through February 8, 2018, but the health care-related provisions have longer impact. Cadillac Tax—Postponed to 2022 The so-called “Cadillac Tax” is designated in the Affordable Care Act (ACA) as a 40% excise tax on high-cost employer-sponsored health plans (i.e., plans that cost more than $10,200 for single coverage and $27,500 for family coverage—adjusted for increases in health care costs after 2010). Originally scheduled for implementation in 2018, the tax was previously delayed to 2020 by a 2015 action. This most recent Congressional action delays Cadillac Tax implementation until 2022. CHIP—Funded The federal stopgap funding deal also included funding for the Children’s Health Insurance Program (CHIP), which covers about 9 million children whose parents’ earnings are too high to qualify for Medicaid but too low to afford private health coverage. CHIP has been operating without long-term funding since September 30, 2017, and some states were at risk of discontinuing CHIP without further federal funding. The current funding is intended to keep CHIP funded through 2023. Medical Devices Tax—Delayed The federal stopgap funding deal also delayed until January 1, 2020 implementation of the ACA’s 2.3% percent tax on medical devices. Initial payments of this tax had been due January 29, 2018. Wespath Benefits and Investments continues to monitor legislative activity that impacts health care programs. We will provide analysis and updates as more information becomes available. Return to Top Disclaimer: This e-newsletter is provided by Wespath Benefits and Investments as a general informational and educational service to its plan sponsors, the annual conferences, plan participants and friends across The United Methodist Church. It should not be construed as, and does not constitute, legal advice nor accounting, tax, or other professional advice or services on any specific matter; nor do these messages create an attorney-client relationship. Readers should consult with their counsel or other professional adviser before acting on any information contained in this newsletter. Wespath expressly disclaims all liability in respect to actions taken or not taken based on the contents of this newsletter. Copyright © Wespath Benefits and Investments, a general agency of The United Methodist Church Share your suggestions and comments about Health Care Reform Update