State-employee health benefits: Avoiding the ObamaCare ‘Cadillac tax’
By Naomi Lopez Bauman
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State-employee health benefits: Avoiding the ObamaCare ‘Cadillac tax’
By Naomi Lopez Bauman
Download Report
Under the Affordable Care Act, or ACA, the federal government imposes an excise tax on high-value, employer-provided health-insurance coverage, commonly referred to as “Cadillac” plans. Originally scheduled to go into effect in 2013, the Obama administration has delayed levying the “Cadillac tax” until 2018.
The value of some health-insurance plans for Illinois’ active state employees and their dependents is so generous that it could trigger the ObamaCare “Cadillac tax” penalty, costing taxpayers $2 billion over the next 20 years, and another $1 billion for retiree health insurance.
The Illinois Policy Institute has shown that the state’s insurance offerings are not only out of line with what is offered in the private sector, but also that the Cadillac-tax penalty will further squeeze out spending on the state’s priorities while offering no additional health benefits to government employees.