human resources department  · colorectal cancer screening (using fecal occult blood testing, sig-...

In the April newsle er, we noted the nega ve consequences that could be presented with the “Cadillac Tax” pro-

vision under the Affordable Care Act (ACA), which takes effect in 2018. If costs under the ArchCare medical plan

increase at a pace equal to or surpassing recent infla onary trends, the benefit provided to employees will exceed

the Cadillac tax thresholds and prompt a 40% excise tax on these extra benefit amounts.

There con nues to be discussions in Congress regarding the ACA; from replacing the en re law, to revising various

provisions, rules and features. The Cadillac Tax is one of the targets, but here is how the law stands today:

Tax Penalty 40% of the cost of plans that exceed predetermined

threshold limits

Pre‐Determined Threshold Limits (2018) $10,200 for individual coverage; $27,500 for family

coverage

Tax Example Single Coverage of $12,000 ($12,000 - $10,200 =

$1,800; $1,800 * .40 = $720 excise tax

ArchCare 2015 Medical Plan Amounts For highest-cost plans: Individual - $9,065; Family -

$26,612

If standard health care trend con nues, the plan costs will EXCEED the above thresholds

Human Resources Department

205 Lexington Avenue

New York, NY 10016

T: 646 633 4415 F 212 360 3971

www.archcare.org