United Benefit Advisors Insight and Analysis Blog

When it comes to the "Cadillac" tax, there's no escaping death and taxes

Posted by: Carol Taylor    Mar 22, 2016 12:00:00 PM

The 2015 UBA Health Plan Survey data reveals who will not escape the 40% excise tax to take effect in 2020. The “Cadillac” tax, now called the excise tax, was originally set to start in 2018, but legislation passed the end of 2015 delayed the start date by two years.

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Topics: ACA, PPACA, excise tax, Cadillac Tax, UBA Health Plan Survey, Affordable Care Act, health care cost

Two PPACA Taxes Might Get the Ax

Posted by: Jennifer Stanley    May 12, 2015 12:00:00 PM

Health Insurance Providers Fee

Section 9010 of the Patient Protection and Affordable Care Act (PPACA) imposes a fee on each covered entity engaged in the business of providing health insurance for United States health risks. This is known as the Health Insurance Providers (HIP) fee or the Health Insurers Tax (HIT) tax. The first filings were due from covered entities by April 15, 2014, and the first fees were due September 30, 2014. Self-insured plans are not covered entities for the purpose of the HIP Fee. The HIP fee is an important revenue source for PPACA, amounting to $8 billion in 2014 and rising to $14.3 billion by 2018. While fully insured plans are not directly responsible for the HIP fee, the Congressional Budget Office was correct when it indicated that it would be “largely passed through to consumers in the form of higher premiums.” Some premiums have increased as much as 4.5%.

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Topics: PPACA Affordable Care Act, Jennifer Kupper, excise tax, Cadillac Tax, Health Insurers Tax, Health Insurance Providers fee

Potential Employer Penalties under the Patient Protection and Affordable Care Act

Posted by: Danielle Capilla    May 7, 2015 12:00:00 PM

Employers that do not meet the requirements of the Patient Protection and Affordable Care Act (PPACA) need to be concerned about several potential penalties. Two significant penalties include the excise tax, which can be as much as $100 per affected individual per day, and the penalties that larger employers must pay if they do not meet their employer-shared responsibility/play or pay obligations.

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Topics: PPACA Affordable Care Act, Play or Pay, excise tax, employer shared responsibility, IRS Form 8928

IRS Requests Input on the Cadillac Tax

Posted by: Linda Rowings    Mar 10, 2015 12:00:00 PM

Beginning in 2018, plans that provide coverage that exceeds a threshold will owe an excise tax that is frequently referred to as the “Cadillac tax.” The threshold generally will be $10,200 for single benefits and $27,500 for benefits provided to an employee, retiree, or member of a bargaining unit and dependents. The tax is 40% of the value of coverage provided over that threshold level.

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Topics: compliance, ACA, IRS, compliance with health care reform, HRA, excise tax, Cadillac Tax

Top 5 Questions About The “Cadillac” Tax

Posted by: Linda Rowings    Jan 29, 2015 12:00:00 PM

The excise tax on high cost plans (also referred to as the Cadillac tax and the 4980I tax) is scheduled to take effect in 2018. To date, regulations have not been issued, so many of the details about how the tax will operate are unclear. (The regulatory agencies are responsible for interpreting the law, adding needed details, and reconciling any parts of the law that may be inconsistent.) Based upon how the law itself is written, this is what is known and expected.

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Topics: UBA PPACA Advisor, highlights, 2018, top 5, excise tax, Cadillac Tax