Congress approves $1.4T spending deal that repeals ACA taxes

The Senate on Dec. 19 approved a nearly $1.4 trillion spending deal, which would repeal three major ACA taxes.

The bills are now headed to President Donald Trump for his signature. The president's advisors said he will approve the measures, which will fund the federal government through the end of fiscal year 2020. The president needs to sign the bills Dec. 20 to keep federal departments running, according to CNBC.

The year-end spending deal is considered a win for health insurance companies and medical device makers because it would repeal the ACA's health insurer tax and medical device tax, according to The Hill. The spending deal would also repeal the Cadillac tax, a 40 percent excise tax on high-cost employer-provided insurance plans that has drawn bipartisan opposition.

The repeal of the three ACA taxes will deprive the government of $373.3 billion over 10 years, according to The Hill, which cited an analysis released Dec. 17 by Congress's Joint Committee on Taxation. The committee estimated the repeal of the Cadillac tax, medical device tax and health insurer tax would cost $197 billion, $25.5 billion and $150.8 billion, respectively, over a decade.

The spending deal also delays payment cuts to disproportionate share hospitals and funds gun violence research.

More articles on leadership and management:

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Northwell Health commits $1M to fight gun violence

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