CADILLAC TAX

Cadillac Tax

The Affordable Care Act’s Cadillac tax, a 40 percent excise tax on certain high-cost, employer-sponsored health coverage, has been delayed until 2020.

The ACA had imposed the excise tax on the cost of coverage of an employer-sponsored plan exceeding $10,200 for single coverage and $27,500 for family coverage, effective for plan years on or after Jan. 1, 2018. But a 2015 law suspends the tax for 2018 and 2019.

Additionally, the 2015 law directs the Comptroller General to report to congressional committees on the suitability of using the premium for the Blue Cross/Blue Shield standard benefit option under the Federal Employees Health Benefits Plan as a benchmark for the age and gender adjustment of the applicable dollar limit for this excise tax.

Cadillac Tax