Thousands of $$$ in New Taxes for Middle-Class Workers by Josh Archambault
Publish Date: October 5, 2012
Impact of the Federal Health Law’s “Cadillac Insurance Tax” in Massachusetts Thousands of $$$ in New Taxes for Middle-Class Workers by Josh Archambault Conventional wisdom is that healthcare in Massachusetts will not change significantly under the federal Patient Protection Affordable Care Act (PPACA), known as ObamaCare. However, a careful review of the law reveals that many big changes are ahead for the Commonwealth. This brief will examine the impact of the so-called “Cadillac tax” included in ObamaCare.
Under the PPACA, sponsors of self-funded group health insurance plans and all health insurance issuers themselves will be assessed an excise tax on any benefits provided to employees that exceed $10,200 for an individual, and $27,500 for a family, beginning in 2018. Given that Massachusetts has long been a state with high premiums, this brief explores what the average person is likely to pay in additional federal taxes during the first decade after the provision goes into effect. What follows is a snapshot of the potential impact on a small business owner, a police officer, and a middle school teacher.