Using a recently developed method for precisely controlling collision energy, we observe a dramatic suppression of inelastic collisions between an atom and ion (Ca+Yb^{+}) at low collision energy. This suppression, which is expected to be a universal phenomenon, arises when the spontaneous emission lifetime of the excited state is comparable to or shorter than the collision complex lifetime. We develop a technique to remove this suppression and engineer excited-state interactions. By dressing the system with a strong catalyst laser, a significant fraction of the collision complexes can be excited at a specified atom-ion separation. This technique allows excited-state collisions to be studied, even at ultracold temperature, and provides a general method for engineering ultracold excited-state interactions.