- 2,127
Cadillac Tax
- Thread starter bluediamond
- Start date
- 4,716
Ohhh Man............I thought you bought a new Cadillac Blue?
Happy Veterans Day Bro!
Happy Veterans Day Bro!
- 8,448
What is it with HHS's obsession with Cadillacs? Last month, the HHS director Cohen said that the new HC.gov will operate like a Cadillac, as compared to last year's Yugo.
- 4,716
LOL AC too funny bro!!
I'm guessing they have to keep the good Pro American and the bad foreign.
Happy Veterans Day to you AC thanks for serving Bro!
- 8,448
LOL AC too funny bro!!
I'm guessing they have to keep the good Pro American and the bad foreign.
Happy Veterans Day to you AC thanks for serving Bro!
Thank-you HouCoogster! Everyone who volunteers to work a dangerous job deserves our Thanks. Heck, even as a door-to-door insurance agent I've been assaulted a couple of times.
Anyone else think it's funny that they dictate that a family rate must be 2.85 times the individual rate (and 1.7x for EC, 2.0x for ES), but the fine is based on 2.7x individual for ES/EC/FAM?
Individual rates under the threshold can result in a penalty generating family premium. Individual and family rates over the threshold (even by a lot, $13,000-$16,000 for an indiv when the penalty is $10,200) will NOT get the penalty if they are ES or EC, respectively (1.7x16,000 and 2.0x13000 are both less than $27,500).
(Yes, I'm pretty sure that's how it works, here's the full text of the law:
26 U.S. Code § 4980I - Excise tax on high cost employer-sponsored health coverage | LII / Legal Information Institute (b)(C)(II) is the part I'm referencing- "in the case of an employee with coverage other than self-only coverage...$27,500..." )
Individual rates under the threshold can result in a penalty generating family premium. Individual and family rates over the threshold (even by a lot, $13,000-$16,000 for an indiv when the penalty is $10,200) will NOT get the penalty if they are ES or EC, respectively (1.7x16,000 and 2.0x13000 are both less than $27,500).
(Yes, I'm pretty sure that's how it works, here's the full text of the law:
26 U.S. Code § 4980I - Excise tax on high cost employer-sponsored health coverage | LII / Legal Information Institute (b)(C)(II) is the part I'm referencing- "in the case of an employee with coverage other than self-only coverage...$27,500..." )
- Thread starter
- #7
- 2,127
Thanks man and happy vets day to you, late.
No but did get a new this past June when my other was totaled from the flood.
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I'll tell you what Ray the whole thing is funny and strange only a couple of things are remotely good about this law.
Hell I have clients I wrote in June on a SEP and their rate increase puts them into the cadillac tax bracket for 2015, so this means everyone will have to keep raising their deductible yearly to try and stay away from this. This whole thing stinks.
Raising the deductible/oop's may not be a solution for everyone. Keep in mind that benefit requirements may very well be a barrier to more OOP.
Another way to look at the Cadillac tax is that it is a tax on older populations and higher risk populations. So an employer will have less incentive to higher older people, and anyone they believe is sick and driving up their costs.
Don't forget, less incentive to hire families or individuals, and more incentive to hire single parents and childless couples with that giant buffer that's built in on those tiers.
Then again, I'm pretty sure you're not allowed to discriminate on family status, any more than age, sex, or health. Legally, it should be a non-issue. Realistically, I don't think anyone outside of this forum even comprehends the ramifications. When they do, it will be interesting to see what they do to avoid penalties.
- 8,448
August 10, 2015
The IRS (probably at the direction of the President) is adjusting the Cadillac Tax to stick to health insurers that sell/administer top quality plans, rather than companies that buy them.
Excerpt:
"The IRS says the entity providing health coverage is liable for the Cadillac tax. That would be the employer for health savings account (HSAs) and Archer medical savings accounts (MSAs). But for health coverage provided for an insured group health plan, the coverage provider is the health insurance issuer."
Source: New IRS Guidance Suggests Obamacare 40% Cadillac Tax Could Get Even Worse
ac
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