The 40% excise tax on high cost health plans, often referred to as the “Cadillac Tax,” has been delayed for two years. President Obama signed the Consolidated Appropriations Act of 2016, which contains the following provisions relating to the Cadillac Tax:
- Delays the tax from 2018 to 2020.
- Amends Code Section 4980I(f) to provide that the tax is deductible by employers, which is welcome news for any employer that may become subject to the tax.
- Increases the annual limits of $10,200 and $27,500 by cost of living indexes. This means the annual limits that will be in effect for 2020 will be higher.
- Requires studies and recommendations regarding the benchmarks for the age and gender adjustments of the applicable dollar limit.
Disclaimer
While we are pleased to have you contact us by telephone, surface mail, electronic mail, or by facsimile transmission, contacting Kilpatrick Townsend & Stockton LLP or any of its attorneys does not create an attorney-client relationship. The formation of an attorney-client relationship requires consideration of multiple factors, including possible conflicts of interest. An attorney-client relationship is formed only when both you and the Firm have agreed to proceed with a defined engagement.
DO NOT CONVEY TO US ANY INFORMATION YOU REGARD AS CONFIDENTIAL UNTIL A FORMAL CLIENT-ATTORNEY RELATIONSHIP HAS BEEN ESTABLISHED.
If you do convey information, you recognize that we may review and disclose the information, and you agree that even if you regard the information as highly confidential and even if it is transmitted in a good faith effort to retain us, such a review does not preclude us from representing another client directly adverse to you, even in a matter where that information could be used against you.
