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Blog

Good Neighbor Travel Insurance Blog

Cadillac plan tax coming in 2018

August 10, 2010 By : Doug Gulleson

Good Neighbor Insurance (www.gninsurance.com and www.gninsurance.com) is continuing to update our clients on the new health insurance laws.   There are six major coverage options for those in the US and even though some of the rules and regulations are similar for all many differences are there and it all depends on how old you are and for whom you work.  Many critical details of this new insurance law will be clarified in the months and years to come.

Can you tell me more about the 40% excise tax on so-called Cadillac Plans for 2018?

This tax is mainly to discourage companies from providing too rich a benefit. The excise tax, beginning in 2018, will be equal to 40% of the aggregate value of applicable employer-sponsored coverage that exceeds $10,200 for an individual policy and $27,500 for a family policy, indexed to inflation. The thresholds are pegged to a health cost adjustment formula that is designed to increase the thresholds in the event that the actual growth in the cost of U.S. health care between 2010 and 2018 exceeds the projected growth for that period. There are slightly higher thresholds for “high-risk professions” listed in the law.

The aggregate value is determined under the rules of COBRA continuation. It takes into account all employer-sponsored coverage (including employee contributions), including premiums, a Flexible Spending Account (FSA), a Health Reimbursement Arrangement (HRA), and a Health Savings Account (HSA), along with other supplementary health insurance coverage. It excludes vision, dental, accident, disability, and long-term care coverage. The employer is responsible for calculating amounts subject to the tax and reporting to each Plan Administrator, which is responsible for reporting and paying tax to IRS.

Does the excise tax on Cadillac Plans apply to Taft-Hartley (union) Plans?

Yes.

Doug Gulleson totally adores scuba diving and travels overseas throughout the year with his underwater camera in one hand and a cup of coffee in the other.   Visit Good Neighbor Insurance at www.gninsurance.com  and www.gninsurance.com/tripcancellation for Arizona and international travel insurance coverage.

Doug Gulleson

Search Results

Adventure Sports Travel Insurance

October 28, 2013

Are you traveling to another country to go spelunking, white water rafting, or some other crazy outdoor sport? Do you have travel insurance that specializes in coverage for your sport as well as for your travels?  If not, check our upgraded adventure sports travel insurance plans at http://www.adventuresportsinsurance.com/. Good Neighbor Insurance,  https://www.gninsurance.com/, now have a few […]

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Ebola reappears in West Africa: UPDATED

June 25, 2014

The deadly ebola virus has reappeared in West Africa with more than 60 outbreak hotspots. And it’s getting worse: UPDATED July 1,2014. According to Doctors Without Borders and other aid workers, “The scale of the current Ebola epidemic is unprecedented in terms of geographical distribution, people infected and deaths,” MSF said in a statement. The World […]

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INCLUDED in China: Nonprofit recognized by Economist Magazine

August 21, 2014

INCLUDED, one of our group clients, was recently recognized by The Economist magazine. The non-profit group INCLUDED in China is one of our Good Neighbor Insurance clients. Jonathan Hursh started the organization to provide teachers and schoolrooms (converted cargo containers) for children of migrant workers. The non-profit was featured in The Economist magazine this June (see […]

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Expatriate medical insurance and overseas travel insurance for those with U.S. Medicare – Part 3.

February 28, 2018

Expatriate medical insurance and overseas travel insurance for those with U.S. Medicare– Part 3.  This is the last part of our three-part series discussing U.S. Medicare and international medical travel and expatriate medical insurance.  For those who are expatriates / expats (for us at Good Neighbor Insurance we call expats who live outside their native / […]

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Affordable Care Act (ACA) Violations as well as Penalties and Excise Taxes

June 1, 2015

Affordable Care Act (ACA) Violations as well as Penalties and Excise Taxes. The Affordable Care Act (ACA) includes numerous reforms for group health plans and creates new compliance obligations for employers and health plan sponsors. The ACA, for example, requires health plans to eliminate pre-existing condition exclusions and provide coverage for preventive care services without cost-sharing. Some […]

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Phoenix Brain Tumor Walk – This Saturday, March 15th, 2014

March 12, 2014

One of our GNI (Good Neighbor Insurance) family members, Sandy and Richard have asked us to share with our guests, you all, of a great walk they are involved with. Below is information on how to be a part of this great cause. Thank you, Sandy and Richard, for your dedication in helping us Americans […]

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