As a way to pay for the new health care reforms, a new excise tax on “high cost” health care plans is set to kick in Jan. 1, 2018.
The tax will be 40% of a health plan’s annual costs that exceeds a certain threshold: $10,200 for individual coverage and $27,500 for family coverage.The initial thresholds will be adjusted annually for inflation.
“Those aren’t Cadillac plans, they’re somewhere between a Peugeot and a refurbished taxi,” employment lawyer Rich Paul, of Paul Plevin law firm, said during the recent LEAP conference in San Diego. “Clearly, a lot of plans will be taxable.”
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