Obamacare’s ‘Cadillac Tax’ Will Soon Hit Many Cities and States

by Robert Pozen,  Real Clear Markets

While much has been written on the ACA’s implications for private sector employers, only a few commentators have focused on the ACA’s implications for cities and states. LIke any for-profit employer, any local government with 50 or more full-time employees (100 or more in 2015) must offer an ACA-compliant healthcare plan, or pay significant penalties. Moreover, under current law, the healthcare plans of many local governments will become subject in 2018 to the “Cadillac” tax – an excise tax on healthcare costs above specified annual amounts. The idea behind the Cadillac tax is to help rein in the spiraling cost of health care by putting pressure on employers to offer less generous health insurance plans.  Read the entire story.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s