1 in 4 Employers Could be Subject to the 'Cadillac Tax' in 2018

The Kaiser Family Foundation recently released an prospective analysis on the Affordable Care Act's tax on high-cost health plans ('Cadillac Tax'). Here are some key findings from the report:

·         1 in 4 employers offering health benefits could be subject to the 'Cadillac Tax' in 2018.

·         The 2018 tax thresholds are $10,200 for single coverage and $27,500 for other coverage.

·         The tax is 40% of the difference between the annual cost of health benefits and the threshold amount.

·         An estimated 30% of employers would be subject to the tax by 2023.

·         By 2028, 42% of employers may have plans where costs exceed the threshold for some or all employees.

·         Today, 19% of employers would be taxed if the 'Cadillac Tax' was in effect.

Source: Kaiser Family Foundation, August 25, 2015