Doctor concerned with health care law

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Health Law Daily, December 18, 2015

Shutdown avoided, ACA taxes delayed

By Melissa Mitchell, J.D. and Michelle L. Oxman, J.D., LL.M.

Both the House and the Senate passed a $1.1 trillion appropriations bill on December 18, 2015, which was immediately signed by President Obama. The legislation avoided a government shutdown, funded the federal government through September 2016, and postponed the implementation of two major provisions of the Patient Protection and Affordable Care Act (ACA) (P.L. 111-148)—the medical device tax and the so-called Cadillac tax—for two years. The 2,000 plus page law also contains other notable appropriation measures for Medicare, Medicaid, and other federal health programs.

The House passed the bill by a vote of 316 to 113. After voting on related procedural motions, the Senate passed it by a vote of 65 to 33 less than two hours later. President Obama signed the bill immediately. The President thanked Speaker Paul Ryan for helping to “make government work.”

Health reform implications. Section 9001 of the ACA places an excise tax, known as the Cadillac tax, on high-cost employer-sponsored plans. Section 9009 of the ACA places a 2.3 percent excise tax on the sale of certain medical devices. Both of these provisions have been in the crossfire of the Republican-backed bills that attempted to repeal the ACA (see House to vote on repeal of major ACA provisions, October 28, 2015; Senate passes bill dismantling Affordable Care Act, December 9, 2015).

Other health implications. In addition to general funding of Medicare, Medicaid, and other federal health care programs, the appropriations law also addresses: (1) Medicare payments for digital radiography; (2) limits on Medicaid payments for durable medical equipment (DME) to the Medicare payment; (3) Medicare payments for disposable devices; and (4) Medicare payments for hospitals in Puerto Rico.

MainStory: TopStory NewsStory GeneralNews HealthCareReformNews MDNews HouseNews SenateNews FederalLegislationNews WhiteHouseNews CMSNews DMENews HealthReformNews MedicaidNews MDeviceNews PartANews PartBNews

Back to Top

Health Law Daily

Introducing Wolters Kluwer Health Law Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.

A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.