2018 Cadillac Plan Tax
- 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.