As part of the affordable Care Act (ACA), high-cost health plans will be subject to an excise tax on benefits that exceed a pre-determined cost threshold beginning January 1, 2018. Though it is a full two years away, Health Net is here to help you start gathering information now to be prepared for the future!
The excise tax, known as the “Cadillac Tax” applies to insured and self-funded large and small group health plans. The amount of the tax is 40 percent of the amount considered in excess of the cost threshold. Final regulations, however, have not been issued, and we expect further IRS guidance before the tax is assessed.