A looming tax on relatively expensive health benefits packages could end up affecting 60% of large employers in 2018, according to Towers Watson & Company, New York (NYSE:TW).
The “Cadillac plan” excise tax is supposed to take effect in 2018. If implemented as written in the Affordable Care Act – the legislative package that includes the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act – the provision would impose a 40% tax on health plans that provide relatively high-cost health plans.
The 2018 cut-offs are set to be $10,200 for single coverage and $27,500 for family coverage.