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Obamacare Cadillac Tax: A Looming Threat to Your Finances

Home/Healthcare News/Obamacare Cadillac Tax: A Looming Threat to Your Finances

Obamacare Cadillac Tax: A Looming Threat to Your Finances

by Dan Mangan | CNBC | August 25, 2015

Obamacare Cadillac Tax: A Looming Threat to Your Finances

Sovereign Solutions Editor’s Note:

This piece provides an excellent layout of how the Cadillac tax works and what to expect in the future.

Future employer sponsored benefits are bound to be curtailed in order to limit effects of this notorious Cadillac tax. It is one of the most politically unpopular taxes in existence.

The Obamacare Cadillac tax’s survival is in question, but the possibility of it escaping the grim reaper ought to be considered.



If you like your flexible spending account … you might not be able to keep your flexible spending account.

Obamacare’s looming “Cadillac tax” on high-cost health plans threatens to hit 1 in 4 U.S. employers when it takes effect in 2018—and will impact 42 percent of all employers by a decade later, according to a new analysis. (Tweet This)

And many of those employers will be subject to the heavy Obamacare tax because they offer popular health-care flexible spending accounts to workers, which, ironically, are designed to reduce the income tax burden to those employees.

As a result, the co-author of the analysis expects the health FSAs to start being phased out and “largely disappearing” over time by companies looking for reduce their exposure to the Cadillac tax.

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By | 2017-03-28T10:26:37-04:00 September 29th, 2015|Categories: Healthcare News|Tags: , , |0 Comments

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