When Congress passed the Affordable Care Act (ACA), it included excise taxes on health insurance providers, pharmaceutical manufacturers and importers, and medical device manufacturers and importers. Those taxes were expected to help offset the cost of providing health insurance coverage to millions of Americans under the law. In early 2018, Congress suspended the medical device tax for 2018 and 2019 and suspended the health insurer tax for 2019. Subsequent legislation passed in late 2019 permanently repealed the medical device tax starting in 2020 and the health-insurer tax starting in 2021. Excise taxes on the health care industry raised $12 billion in 2019.
