Cadillac Tax on Really Nice Employer Health Plans

Cadillac Tax - Photo from Morgan & White
Cadillac Tax

The Cadillac Tax, set to begin in 2018 – 2020 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

Health Net Update 11.24.2015   1.19.2016

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 4.29.2015 – Legislation introduced to eliminate Cadillac Tax ACA Times.com  Planning for Cadillac Tax Wikipedia on Cadillac Tax

26 U.S. Code § 4980I – Excise tax on high cost employer-sponsored health coverage

American Health Care Act – Donald Care  retain the ACA’s so-called Cadillac tax on high-value plans but delay it until 2025 – page 85 3.6.2017 Revision

Check out Group Supplemental Plans to avoid the tax!

Related Pages in Financial Impact of Health Care Reform on Premiums  Section

4.14.2016 Ways & Means Committee Hearing – Transcripts Sound is missing for the 1st minute or two

 

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