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More taxpayers could be hit by the Cadillac tax

By Jay Heflin - 03/18/10 09:50 AM ET

The tax on high-end health plans included in the health reform bill could force more plans to be subjected to the tax sooner than originally expected, according to the ALF-CIO blog. 

The tax was originally indexed at 1 percentage point above the consumer price index. Now, according to the blog, it will be indexed even with CPI. 

Premiums abide by an index that accelerates much faster than CPI.

This means the cost of insurance outpaces the CPI so health plans will hit the tax's threshold sooner than if the levy was indexed at CPI plus 1 percent.

It is unclear if the tax's 2018 effective has been changed, or if there will be a carve out on plans for taxpayers earning less than $250,000 annually. 

As it currently stands, family plans costing more than $27,500 and individual plans cost more than $10,200 are subjected to the tax in 2018. 



Source:
http://thehill.com/blogs/on-the-money/domestic-taxes/87575-more-taxpayers-could-be-hit-by-the-cadillac-tax

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