You are confusing the Cadillac health plan tax with current income taxes. This is not a tax that is included when you file your 1040 every year with the IRS. This is a 40% tax that is charged to your employer if your healthcare plan is considered to be too expensive or lavish. Our healthcare plans at UPS will fall under this tax when it goes into effect in 2018. The teamsters fought hard for this President to get elected not knowing the hardships it will cause them in the long term as I don't think this has gone unnoticed by UPS management and will be brought up when contract negotiations start later this year or next.
The excise tax imposed will be on the amount over $27,500 only, for family plans (UPS), not on the entire amount. Many UPS plans are either self funded or union run non-profit plans that will
not exceed $27,500 annually even with the expected premium increases, and if they do you'll be paying a co-premium already that will lower that cost under the threshold. Affordable care act or not, UPS will not accept costs at that magnitude without co-premiums from employees. The free lunch is over. That's reality Brett, with or without President Obama.
My question to you is why weren't you screaming when your beloved political party sat on their corporate funded asses when they had a chance to "fix" this broken system?
Without the ACA costs will continue to escalate, most likely reaching levels even higher than the CBO estimates under ACA. Do you think if the ACA is struck down or repealed sick people won't seek care? Or maybe they won't get sick in Republican fantasyland? More visits to emergency rooms from uninsured won't lower UPS's healthcare costs. More people paying for their healthcare will.
