Cadillac Health Plan Tax in 2018

[pdbrian]

My client called me today wanting to know about the 40% tax on Cadillac group health plans. It looks as though the plans will be taxed not because of higher benefits, but because of higher cost. The problem I can see with this is that groups of older employees living in high cost areas like Los Angeles are being taxed just because of the cost of the plan. Someone at the same age and benefits living in a lower cost area would avoid he tax, while my client will have to either lower his cost or pay a tax on every dollar that is above the threshold.
Does anyone have any insight to share regarding this part of Obamacare?

Does

 

[stuy119]

Every decision that was made with this law was put into place to de-fragment the health insurance market to bring us closer to a single-payor system. Taxing higher-priced plans is a class warfare tactic, not designed to improve the coverage of the average American, but rather to bring the level of care down for those at the top.

All you really need to know.

 

[LOM58]

Wait a minute. There won't be any high priced health plans now that Obama has fixed our health care system. Low rates and great benefits for everybody, right?

 

[ABC]

I don't see any way around this tax.

If and it's a big if, the community rating brings down the cost of the 55+ policies. That might help. These folks will have to go to the lowest QHP plan which has the 60% actuarial value.

Gov. employees & Unions will be getting hit with this excise tax.

I bet the end up amending this tax.

 

[taterpeeler]

Wait a minute. There won't be any high priced health plans now that Obama has fixed our health care system. Low rates and great benefits for everybody, right?

you are correct SIR.... dont know why everyone is complaining. lower prices is needed and im happy folks will now see that

 

[AllenChicago]

I don't see any way around this tax.

Gov. employees & Unions will be getting hit with this excise Cadillac tax.

I bet the end up amending this tax.

May 12, 2015

State and Local governments are already planning a way out of this huge 40% tax. They're either going to reduce benefits, or just stop offering coverage, which will induce employees to get an ACA Individual policy.

Story: The Cadillac Tax Will Soon Hit Many Cities and States.
ac

 

[russelltw]

As long as the spouse does not have access to coverage, they could get the subsidy...if spouse has coverage at work, prepare for "gnashing of teeth" when they see what it costs to add themselves to spouse's group plan.

 

[somarco]

Rusty makes a good point. Most of the folks I know that work for the govt are dual income and sometimes both spouses work for the same entity (usually a school).

I know school workers and teachers are quite vocal and already complaining about the new benefit structure. Unfortunately most don't connect the dots from reduced benefits to Obamacare.

We don't have the union issues in GA (a RTW state) like other areas and the teachers unions don't have a lot of clout.

Further reductions in benefits won't be well received.

Most of the reductions that have been talked about and implemented here have been mostly in the retirement area (terming DB plans and replacing with 401k) and giving the boot to retiree health insurance.

I see the Cadillac tax being more of an issue with union CBA's than non-union (or weak union) employee groups.

 

[axeman462]

This 40% cadillac tax, is this just for group health plans, or would it affect individual plans like a plan F medsupp too?

 

[sman]

This 40% cadillac tax, is this just for group health plans, or would it affect individual plans like a plan F medsupp too?

Medicare Supplements aren't primary insurance (Medicare is in this case) so no, Med Supps won't be impacted by the cadillac tax.