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Obamacare: 40% tax on highend healthcare plans?
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<blockquote data-quote="cheryl" data-source="post: 990038" data-attributes="member: 1"><p>This is all so confusing... After digging around on the internet for a while I found this info:</p><p></p><p><a href="http://en.wikipedia.org/wiki/Patient_Protection_and_Affordable_Care_Act" target="_blank">Patient Protection and Affordable Care Act - Wikipedia, the free encyclopedia</a></p><p></p><p><strong>Effective by 2018</strong></p><p></p><p><span style="color: #000000"><span style="font-family: 'sans-serif'">A 40% </span></span><a href="http://en.wikipedia.org/wiki/Excise_tax" target="_blank">excise tax</a><span style="color: #000000"><span style="font-family: 'sans-serif'"> on high cost </span></span><a href="http://en.wikipedia.org/wiki/Cadillac_insurance_plan" target="_blank">("Cadillac") insurance plans</a><span style="color: #000000"><span style="font-family: 'sans-serif'"> is introduced. The tax (as amended by the reconciliation bill) is on insurance premiums in excess of $27,500 (family plans) and $10,200 (individual plans), and it is increased to $30,950 (family) and $11,850 (individual) for retirees and employees in high risk professions. The dollar thresholds are indexed with inflation; employers with higher costs on account of the age or gender demographics of their employees may value their coverage using the age and gender demographics of a national risk pool.</span></span></p><p></p><p></p><p>The following is from a public employee union website, but I think it applies to everyone:</p><p></p><p>The Impact of the Excise Tax on High-Cost Health Plans</p><p></p><p style="text-align: left"><span style="color: #000000"><span style="font-family: 'cambria'"><strong>How do I know if my health plan's benefits will be taxed?</strong></span></span></p> <p style="text-align: left"><span style="color: #000000"><span style="font-family: 'cambria'">The tax will be imposed if, in 2018, the total employee and employer shares of the premium--without dental and vision--exceed:</span></span></p><p></p><ul> <li data-xf-list-type="ul">$10,200 for an individual plan</li> <li data-xf-list-type="ul">$27,500 for a family plan</li> </ul> <p style="text-align: left"><span style="color: #000000"><span style="font-family: 'cambria'">The tax will be levied at a rate of 40% of the amount of the premium that exceeds these thresholds. For example, if the plan's individual premium is $11,000 in 2018, the plan will owe .4 X ($11,000-$10,200) = $320.The thresholds increase annually at a very low rate of inflation (CPI) + 1% in 2018 and 2019, and CPI only thereafter. As a result, more and more plans will be subject to the tax if health care inflation is not reduced by the new reforms.</span></span></p> <p style="text-align: left"><span style="color: #000000"><span style="font-family: 'cambria'"></span></span></p> <p style="text-align: left"><span style="color: #000000"><span style="font-family: 'cambria'"><strong>Are there any special adjustments?</strong></span></span></p> <p style="text-align: left"><span style="color: #000000"><span style="font-family: 'cambria'">The threshold may be adjusted based on the age and gender of workers covered by the plan. Plans covering workers in high risk professions and retirees will also have their thresholds increased by:</span></span></p> <p style="text-align: left"><span style="color: #000000"><span style="font-family: 'cambria'"></span></span></p><p></p><ul> <li data-xf-list-type="ul">$1,650 for single plans</li> <li data-xf-list-type="ul">$3,450 for family plans</li> </ul> <p style="text-align: left"></p> <p style="text-align: left"></p></blockquote><p></p>
[QUOTE="cheryl, post: 990038, member: 1"] This is all so confusing... After digging around on the internet for a while I found this info: [URL='http://en.wikipedia.org/wiki/Patient_Protection_and_Affordable_Care_Act']Patient Protection and Affordable Care Act - Wikipedia, the free encyclopedia[/URL] [B]Effective by 2018[/B] [COLOR=#000000][FONT=sans-serif]A 40% [/FONT][/COLOR][URL='http://en.wikipedia.org/wiki/Excise_tax']excise tax[/URL][COLOR=#000000][FONT=sans-serif] on high cost [/FONT][/COLOR][URL='http://en.wikipedia.org/wiki/Cadillac_insurance_plan']("Cadillac") insurance plans[/URL][COLOR=#000000][FONT=sans-serif] is introduced. The tax (as amended by the reconciliation bill) is on insurance premiums in excess of $27,500 (family plans) and $10,200 (individual plans), and it is increased to $30,950 (family) and $11,850 (individual) for retirees and employees in high risk professions. The dollar thresholds are indexed with inflation; employers with higher costs on account of the age or gender demographics of their employees may value their coverage using the age and gender demographics of a national risk pool.[/FONT][/COLOR] The following is from a public employee union website, but I think it applies to everyone: The Impact of the Excise Tax on High-Cost Health Plans [LEFT][COLOR=#000000][FONT=cambria][B]How do I know if my health plan's benefits will be taxed?[/B] The tax will be imposed if, in 2018, the total employee and employer shares of the premium--without dental and vision--exceed:[/FONT][/COLOR][/LEFT] [LIST] [*]$10,200 for an individual plan [*]$27,500 for a family plan [/LIST] [LEFT][COLOR=#000000][FONT=cambria]The tax will be levied at a rate of 40% of the amount of the premium that exceeds these thresholds. For example, if the plan's individual premium is $11,000 in 2018, the plan will owe .4 X ($11,000-$10,200) = $320.The thresholds increase annually at a very low rate of inflation (CPI) + 1% in 2018 and 2019, and CPI only thereafter. As a result, more and more plans will be subject to the tax if health care inflation is not reduced by the new reforms. [B]Are there any special adjustments?[/B] The threshold may be adjusted based on the age and gender of workers covered by the plan. Plans covering workers in high risk professions and retirees will also have their thresholds increased by: [/FONT][/COLOR][/LEFT] [LIST] [*]$1,650 for single plans [*]$3,450 for family plans [/LIST] [LEFT] [/LEFT] [/QUOTE]
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