Cadillac Tax on Really Nice Employer Health Plans
The Cadillac Tax, set to begin in
2018 – 2020 Word & Brown 8.20.2019 * CA Health Line 12.21.2015 as part of the ACA, is a 40% tax on benefits over certain thresholds. HRAs, HSAs, Major Medical coverage and other items are included in the coverage that counts towards this tax. The tax will hit insurance and related perks valued at more than $10,200 for singles and $27,500 for families. So for family benefits worth $30,000, the tax would apply to the $2,500 that’s above the limit. The administration has long argued it is a modest step to get health care costs under control. It “will affect only a small portion of the very highest-cost health plans — a total of 3 percent of premiums in 2013,” About one-third of employers will be hit by the tax in 2018 if they do nothing to change their plans 4.7.2015 Word & Brown from Politico
January 2017 – Senators Dean Heller (R-NV) and Martin Heinrich (D-NM) introduced S. 58, after Representatives Mike Kelly (R-PA) and Joe Courtney (D-CT) introduced H.R. 173, legislation to repeal the ACA’s Cadillac/excise Tax, which will impose a 40% excise tax on health plans that exceed certain cost thresholds beginning in 2020
Why Employers are really cutting benefits?
Not the Cadillac Tax Los Angeles Times 8.27.2015
Next Big ObamaCare Battle – Cadillac Tax CA Health Line 9.17.2015
Check out Group Supplemental Plans to avoid the tax!
Related Pages in Financial Impact of Health Care Reform on Premiums Section