Joyce Manchester

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Cadillac Tax impact less than initial estimates

MONTPELIER — The impact of a tax on high-end insurance plans slated to begin in 2018 is not expected to impact the state as much as initially thought, according to the Legislature’s Joint Fiscal Office and the Shumlin administration. The so-called Cadillac Tax, part of the federal Affordable Care Act passed in 2010, will impose a 40 percent non-deductible excise tax on health insurance plans that exceed $10,200 for an individual and $27,500 for a family beginning in 2018. The tax is indexed to inflation and will rise over time. “We have some IRS guidance, but federal regulations have not been issued. To be perfectly candid, the IRS guidance raises as many questions as it answers. Accordingly, whether and how to properly average benefit costs and adjust tax thresholds still needs additional clarification. Continue Reading →

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