By Reg Jones
August 16th, 2012 | Uncategorized
Q. One of the features of Obama’s health care plan is a 40 percent tax on “Cadillac Health Care Plans” starting in 2018. Those whose employers pay for all or most of comprehensive health care plans (costing $10,200 for an individual or $27,500 for families) will have to pay a 40 percent tax on the amount their employer pays. The 2018 start date is said to have been a gift to unions, which often have comprehensive plans.
Do federal government worker health care plans fall under this tax? If so what is the impact (financial) on us?
A. My crystal ball is broken. Even if it were functioning, it wouldn’t predict what will happen in 2018. For the time being you’ll just have to relax and try to curb your anxiety.
August 17th, 2012 at 12:13 pm
Just for an example using present-day premium costs, the FEHB plan I have (NALC) wth self+family coverage runs well under $20,000 annually, with both my contribution and the government contribution factored in. This total is well under the ObamaCare threshold of $27,500 defining a cadillac plan, so I too wouldn’t recommend being overly concerned yet about the 40% taxation.