human resources department · colorectal cancer screening (using fecal occult blood testing, sig-...
TRANSCRIPT
In the April newsle er, we noted the nega ve consequences that could be presented with the “Cadillac Tax” pro-
vision under the Affordable Care Act (ACA), which takes effect in 2018. If costs under the ArchCare medical plan
increase at a pace equal to or surpassing recent infla onary trends, the benefit provided to employees will exceed
the Cadillac tax thresholds and prompt a 40% excise tax on these extra benefit amounts.
There con nues to be discussions in Congress regarding the ACA; from replacing the en re law, to revising various
provisions, rules and features. The Cadillac Tax is one of the targets, but here is how the law stands today:
Tax Penalty 40% of the cost of plans that exceed predetermined
threshold limits
Pre‐Determined Threshold Limits (2018) $10,200 for individual coverage; $27,500 for family
coverage
Tax Example Single Coverage of $12,000 ($12,000 - $10,200 =
$1,800; $1,800 * .40 = $720 excise tax
ArchCare 2015 Medical Plan Amounts For highest-cost plans: Individual - $9,065; Family -
$26,612
If standard health care trend con nues, the plan costs will EXCEED the above thresholds
Human Resources Department
205 Lexington Avenue
New York, NY 10016
T: 646 633 4415 F 212 360 3971
www.archcare.org