Tags: Healthcare Reform | obamacare | cadillac | tax | hitting | consumers

Consumers Getting Hit by Obamacare 'Cadillac Tax'

Thursday, 14 Aug 2014 08:20 AM

By Melanie Batley

Large companies that provide generous health insurance plans are finding ways to shift the costs to their employees in anticipation of Obamacare's 40 percent 'Cadillac tax,' according to a report by Fox News.

A national business group said it is seeing employers shift workers into plans with higher deductibles while making use of health savings accounts to offset the additional costs of the tax. Some are also increasing premiums for spouses who have access to other health insurance plans, while others are cutting benefits altogether.

"The excise tax, when it hits in 2018, will affect both employers and employees," Brian Marcotte, president of the National Business Group on Health, told Fox News.

The tax was estimated to earn the Treasury $80 billion over ten years to help defray the costs of Obamacare. But analysts are now suggesting that the revenue will be lower as companies find ways to avoid the tax, undermining the administration's plans to have the new healthcare program fund itself.

The tax will affect companies that spend more than $10,200 on health insurance per employee.

Henry Aaron of the Brookings Institution said, "It's expected that most businesses that offer that form of insurance will back off and make the insurance less generous, so the tax won't bite."

"What we're finding is almost no employers are going to be hit by this 'Cadillac tax.' You'd be stupid to get hit by this 'Cadillac tax,'" Robert Laszewski of Health Policy and Strategy Associates, told Fox News.

Related Stories:


© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Author: Jeb Bush Has Conservative Record as Governor

Tuesday, 27 Jan 2015 15:35 PM

As there is much debate over the conservative credentials of former Florida Gov. Jeb Bush, a University of Northern Flor . . .

Ex-Bodyguard of Venezuelan Pol in Cocaine Smuggling Case Defects

Tuesday, 27 Jan 2015 22:40 PM

A former bodyguard for Venezuela's second-most powerful man , a leader of its congress and the nation's military wing ,  . . .

US Africa Command Chief: 'We Can't See' Enough to Monitor Terrorists

Tuesday, 27 Jan 2015 22:16 PM

The United States and its international partners in Africa "can't see what's going on enough" to monitor increasingly vi . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved