The Cadillac Tax, which was part of the Affordable Care Act (commonly referred to as Obamacare), and which was set to begin in January 2018 will now be pushed back to 2020 under the budget bill recently passed by Congress and signed into law by the President.
The tax which would have resulted in a tax to plans above premiums of $27,500 family and $10,200 individual beginning in 2018 (at the rate of 40% for premium amounts above these thresholds) has created an unknown for many employers and ultimately employees in units throughout the northeast where premiums are generally higher than the rest of the country.
“This takes the issue off the table for at least the next several years and hopefully forever as it is reviewed in the future,” stated UPSEU President Kevin E. Boyle, Jr.
“We are obviously pleased with this decision and we are hopeful that a future Congress and our next President will work to eliminate this unnecessary tax that has created havoc on negotiations throughout the region,” Boyle added.
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