2018 Cadillac Plan Tax

Effective Date:

  • 1/1/2018

Synopsis:

  • Imposes 40% excise tax on the value of coverage exceeding $10,200 for individual coverage and $27,500 for family coverage ($11,800 and $30,950 for retirees and employees in high-risk jobs) to be indexed annually.
  • Family coverage threshold ($27,500 or $30,950) applies to single and family coverage under a multiemployer plan.
  • Coverage subject to tax include the value of the total premium for employer-provided accident and health coverage, employer and employee contributions to health flexible savings account (FSA), and employer and employee salary reduction contributions to health savings account (HSA).
  • Employer must calculate the tax and alert the coverage providers of the share each is responsible for.

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