$1.1T spending bill suspends device and insurance taxes

The House of Representatives released specifics on a $1.1 trillion funding bill that includes a package of tax breaks, coming down to the wire on Tuesday, Dec. 15, to finalize the bill by the deadline.

The bill includes several  provisions including the following:

• A provision touted by Sen. Marco Rubio (R-Fla.) that would prevent what Republicans call a “bailout” of health insurers under ObamaCare. The provision restricts an ObamaCare program known as “risk corridors” meant to shield insurers from heavy losses in the early years of the law. Money from insurers doing well is given it to insurers faring poorly. So far, however, the program hasn’t taken in enough money to meet demand. The Republican-backed provision would prevent the administration from shifting other funds into the program to make up the difference. Democrats pushed for help for insurers under the risk corridor program earlier in the negotiations, floating the idea of a new tax credit for insurers, but the Republicans wouldn’t budge.
• A one-year suspension of ObamaCare’s tax on health insurers in 2017. The separate annual fee on health insurance providers is one of several taxes designed to help offset the costs of expanding coverage under the Affordable Care Act. Insurance companies say this levy, known as the health insurance tax, is passed on to consumers, drives up premiums and imposes a financial burden on many families and small businesses.
• The Health Insurance Tax (HIT) was projected to bring in about $13 billion in 2018. Insurers have lost about $2.5 billion under the risk corridor program. Rather than making up for the lack of risk corridor help, insurers say the HIT suspension simply result in lower premiums, not a windfall for health insurance companies. 
• A two-year delay of the Cadillac Tax on high-cost health plans. The White House and many economists have defended the tax on high-cost employer-sponsored health plans as a way to reduce health costs and make the healthcare system more efficient but both parties agreed to the delay.
• A two-year suspension of the tax on medical devices. The device tax tool effect in 2013 but would be suspended through 2017. Republicans said the device tax discouraged the development and sales of innovative, lifesaving medical technology. Some Democrats from states with thriving medical technology companies agreed.
• Reauthorization and expansion of aid for emergency workers suffering from ailments related to the Sept. 11, 2001, terrorist attacks in New York.

A vote on the bill is expected on Friday.