ObamaCare’s impact on health costs.
A popular middle class tax benefit could become one of the first casualties of the Affordable Care Act’s so-called Cadillac tax, affecting millions of voters.
Flexible spending accounts, which allow people to save their own money tax free for everything from doctor’s co-pays to eyeglasses, may vanish in coming years as companies scramble to avoid the law’s 40 percent levy on pricey health care benefits.
The promise of free money is hard to turn down, and so when Obamacare offered the states a cheap way of expanding Medicaid, Gov. Rick Snyder found it hard to resist. Yet just a year into Michigan’s expansion, it’s not such a bargain.
In its mission to make sure more Americans have health insurance, the Affordable Care Act depended on states to expand their Medicaid programs to individuals with incomes under 138 percent of the federal poverty level.
Section 9001 of the Affordable Care Act (ACA), set to take effect in 2018, imposes an “Excise Tax on High Cost Employer-Sponsored Health Coverage”, which has come to be known as the “Cadillac Tax” (not due to a corporate sponsorship from GM, however). This is a 40 percent tax on employer-sponsored health benefits that are defined as “excess benefits,” which is defined as anything in excess of $10,200 (employee only) or $27,500 (family) coverage for 2018, with adjustments for subsequent years. The “excess benefits” include not only benefits provided by the employer, but also the portion of premium paid by the employee, as well as any money the employee chooses to set aside out of salary to pay for health expenses via a Flexible Spending Account (FSA).
No. Take more. Really.
While most states have been pushing health insurers to curb proposed price increases, Florida is telling some of them they can charge more.
The state on Wednesday approved an average premium increase of 9.5 percent for Affordable Care Act plans sold to individuals for next year. Insurers had asked to boost rates 8.6 percent on average.
Big business is against it. So is big labor. Ditto for K Street. What do they want? The repeal of Obamacare’s tax on high cost health care plans. A growing number of Republicans and Democrats in Congress are lining up to agree with them.
Health Care: When insurers requested huge rate hikes for their 2016 ObamaCare plans, we were told not to worry because state regulators would force them down. But that’s not happening. Death spiral, anyone?
New York State has in many ways been a showcase for things that have gone right with Obamacare. The rollout of the state-run health insurance exchange went relatively smoothly and registered patients at a clip well ahead of the national average. Supporters say the exchange’s 2.1 million enrollees are proof positive that the law is increasing consumer choice and fostering a competitive marketplace.
Floridians who purchase individual health insurance plans under Obamacare will see their premiums rise by an average of 9.5 percent next year, the state Office of Insurance Regulation said Wednesday.
If you like your flexible spending account … you might not be able to keep your flexible spending account.
Obamacare’s looming “Cadillac tax” on high-cost health plans threatens to hit 1 in 4 U.S. employers when it takes effect in 2018—and will impact 42 percent of all employers by a decade later, according to a new analysis.
Consumers are trying to figure out how they’ll absorb the double-digit increases in health insurance premiums that many insurers have announced for next year. American employers, meanwhile, are worried about what will happen to health costs several years out, in 2018.