Tax Provisions Affected by Health Care Reform 2018

Excise Tax on High-Cost Employer Plans

Beginning in 2018, the new law places an excise tax on high-cost employer-sponsored health coverage (often referred to as “Cadillac” health plans). This is a 40% excise tax on insurance companies, based on premiums that exceed certain amounts. The tax is not on employers themselves unless they are self-funded (this typically occurs at larger firms).