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“Cadillac Tax” More Health Insurance Premium Hikes on the Way?

Thu August 27 2015 9:45 pm  http://www.arlingtoncardinal.com/?p=75184
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New York Cardiac Diagnostic Center Cardiologist Dr. Steven Reisman and GOP Strategist Cheri Jacobus discuss ObamaCare and the rising cost of health care in the U.S.

Dr. Steven Reisman says his clinic has seen a big change in health care with premiums going up for patients, deductibles are going up. Health insurance companies are charging more money, cutting back what they are paying for care, and making a lot of money, and the people that are being hurt are the patients.

In the Cadillac Tax, nearly half of large U.S. employers could have health plans that could be hit by this new tax under Obamacare. Employers will have to pay a 40 percent tax on the health plans.

Cadillac plans are sponsored by employers, believed to be possible because these plans are at least partially attributable to the tax-advantaged status that employer-sponsored health plans currently have. Currently, employer-sponsored health insurance is considered part of the employees’ compensation package, but the compensation is not taxed as wages.

Starting in 2018 Obamacare or The Patient Protection and Affordable Care Act (PPACA, as amended by the Health Care and Education Reconciliation Act of 2010), will impose an annual 40% excise tax (to be payed by insurers) on plans with annual premiums exceeding $10,200 for individuals or $27,500 for a family.

The Cadillac tax is intended to do three things:

Fund Obamacare or help finance the PPACA;

motivate to reduce overall healthcare costs;

and address the unequal tax benefit when employer-based health insurance coverage are excluded from being taxed.



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