Tag: Cadillac Tax

  • Cadillac Tax is in for repairs after a lot of delays

    August 21, 2019

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    The “Cadillac Tax” is a pending tax on employer-sponsored health plans whose value exceeds a legal limit (for being too rich in benefit).  The plans would be subject to a 40% excise tax, levied on the insurance companies, though it is expected the burden will fall on the employees. Originally, this tax was hardly noticed.  Once it received proper acknowledgement, it was not an immediate concern since (at the time) it was years away from going into effect.  Then the deadline approached and they pushed it back, and lawmakers have since pushed it back again.  Now Congress has decided to put the brakes on once and for all, passing a repeal bill with a vote of 419 for repeal and only 6 opposed.  One problem: the Senate, and what it is going to do for federal dollars to pay back the cost of individual coverage subsidies (which is what the tax was designed to offset in the first place).

  • Cadillac Tax is in for repairs after a lot of delays

    August 21, 2019

    Tags:

     

     

    The “Cadillac Tax” is a pending tax on employer-sponsored health plans whose value exceeds a legal limit (for being too rich in benefit).  The plans would be subject to a 40% excise tax, levied on the insurance companies, though it is expected the burden will fall on the employees. Originally, this tax was hardly noticed.  Once it received proper acknowledgement, it was not an immediate concern since (at the time) it was years away from going into effect.  Then the deadline approached and they pushed it back, and lawmakers have since pushed it back again.  Now Congress has decided to put the brakes on once and for all, passing a repeal bill with a vote of 419 for repeal and only 6 opposed.  One problem: the Senate, and what it is going to do for federal dollars to pay back the cost of individual coverage subsidies (which is what the tax was designed to offset in the first place).

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