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"Some have said that this tax only falls on 'Cadillac' healthcare plans, but the reality is that the plans this bill will tax are more like Chevrolets," Sanders said in a statement last week. "Workers have fought hard to negotiate decent healthcare benefits, often in exchange for lower pay. This excise tax unfairly punishes them."
"Too many Americans are struggling to meet the cost of rising deductibles and drug prices. That's why, among other steps, I encourage Congress to repeal the so-called Cadillac tax, which applies to some employer-based health plans, and to fully pay for the cost of repeal," Clinton said in a statement released Tuesday by her campaign.
What they fail to grasp is if your deductible isn't 10 grand and your premium isn't a thousand dollars a month before subsidies then you indeed do have a Cadillac plan.
Obamas fundamentally transformed American health insurance market.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Our great minimal co-pay plan was eliminated due to the Cadillac tax. We now have a high-deductible with Health Savings Account. So far this year out of pocket we have paid over $5,000 so far, and not yet hit the maximum. Last year it was under $400. My share of the premiums went down but not nearly enough to cover that, about $100/month. Meanwhile, for 2016-7 our share of the premium has to go up drastically in stages because in the 2018 year with the current plan they would be taxed over $4 million.
There's a good description of the excise tax on "Cadillac" health plans here: Health Policy Briefs.
From that article:
Quote:
As the law now stands, beginning in 2018, both fully insured and self-funded employer health plans will be assessed the nonrefundable 40 percent excise tax on the dollar amount of any employee premiums that exceed annual limits of $10,200 for individual coverage and $27,500 for family coverage, excluding stand-alone dental and vision plans.
Quote:
Originally Posted by Ih2puo
What they fail to grasp is if your deductible isn't 10 grand and your premium isn't a thousand dollars a month before subsidies then you indeed do have a Cadillac plan.
I don't have either that deductible nor that premium, but I have pretty darn good health insurance. It's Blue Cross/Blue Shield through my former employer, the (evil) federal government. In 2016, I will pay $217.06 per month in premiums for individual coverage. That's $2,604.72 per year, and that's nowhere near $10,200.
Also from the article:
Quote:
The excise tax applies to the insurer in cases where the plan is insured and to the employer where the plan is self-insured.
To recap:
> The "Cadillac" tax starts in 2018.
> It applies to employer health plans.
> It's a tax on the premiums paid by the employee/retiree in excess of $10,200 for individual coverage and $27,500 for family coverage.
> It's a tax paid by the employer, not the individual.
It's worked an extra $10K from me that my previous plan covered and an extra few thousand from my son with the birth of his child....so I guess from Dems standpoint, it's working quite well.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,578 posts, read 81,186,228 times
Reputation: 57818
Quote:
Originally Posted by GreenGene
There's a good description of the excise tax on "Cadillac" health plans here: Health Policy Briefs.
From that article:
I don't have either that deductible nor that premium, but I have pretty darn good health insurance. It's Blue Cross/Blue Shield through my former employer, the (evil) federal government. In 2016, I will pay $217.06 per month in premiums for individual coverage. That's $2,604.72 per year, and that's nowhere near $10,200.
Also from the article:
To recap:
> The "Cadillac" tax starts in 2018.
> It applies to employer health plans.
> It's a tax on the premiums paid by the employee/retiree in excess of $10,200 for individual coverage and $27,500 for family coverage.
> It's a tax paid by the employer, not the individual.
That paragraph was poorly written. The tax is actually on employers who pay premiums of $10,200/$27,500 per employee, regardless of how much of that is passed on to the employee.
In your case, the $2,604.72 is only what you pay, add to that what your employer pays to see whether they will be taxed. The bottom line is that employers will not want to pay that tax, so will find plans that cost less = less benefits = more out-of-pocket.
Why should folks who can AFFORD great insurance be penalized for it....just means the taxpayer isn't on the hook for their medical bills.....
But, if premiums keep going up so astronomically, no one will be able to afford a decent plan.
Your employer cuts your health insurance, which is not taxed ---> premiums go to profit and are taxed or to your wages and are taxed ----> government collects more taxes.
All that stuff about you can keep your plan and not harming care and coverage for people who already had insurance was never true.
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