Short-Term Continuing Resolution Reauthorizes CHIP and Contains Important ACA Tax Extenders

On January 22, 2018, President Trump signed into law a short-term continuing resolution passed by the House and Senate (H.R. 195) that ended a three-day federal government shutdown and will fund the government through February 8, 2018. The bill also contained a six-year reauthorization of the Children’s Health Insurance Program, and delayed three unpopular taxes under the Affordable Care Act. The tax on medical devices and health insurance issuers is now delayed until 2019 and the Cadillac Tax is delayed until 2022. The Cadillac Tax is a 40 percent tax on the value of employer-sponsored health coverage that exceeds certain benefit thresholds. While employers have hoped for a full repeal, the two-year delay gives employers much needed time to address the impact of the Cadillac Tax on its health plan offerings.