In addition to delaying the implementation of the better-known so-called Cadillac tax on high-value health care polices, one of the other things that the Consolidated Appropriations Act of 2016 (Pub. L. 114-113), (signed into law on December 18, 2015) did was implement a two-year moratorium on the medical device excise tax imposed by Internal Revenue Code section 4191.
Because of the moratorium, the excise tax will not apply to the sale of a taxable medical device by the manufacturer, producer, or importer of the device during the period beginning on January 1, 2016, and ending on December 31, 2017.
However, like the Cadillac tax, the action taken on the Medical Device tax is not a repeal but a delay.
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