Does anyone know the current wording on taxing the "Cadillac" plans?

[rhett o rick]

I understand the Pres has agreed to exclude plans that were obtained via collective bargaining. But what is current definition of "Cadillac" plan?

[lapfog_1]

1. I think it's something like "If you help in any way to make Cadillacs, you will be taxed"

but I could be wrong.

:)

[zipplewrath]

2. Moving target

It depends greatly upon what day you want to discuss, the definition is constantly changing. Broadly speaking it was intended to charge a tax/penalty/fee to the companies that purchased health care plans that have premiums and deductibles of more than $8500 for an individual and $14000 for 2 people. There was some sort of floor on this for "families" which was in the $23000 level. However, everyone realized there was a boat load of problems here. Some regions have significantly higher healthcare costs than others. Some plans cover populations with higher median aged employees, therefor costing more. And Unions and other collective barganing groups had negotiated generous benefits in exchange for wage reductions, and these contracts last for years. They are now negotiating new rules as we speak.

The concept was based upon the assertion that generous plans cause health care costs to rise. If you tax them, the companies will seek to lower the costs. The problem is, that because the deductible and the premium both go into defining a cadillac plan, the companies were going to be in a pickle. There was little they could do directly to lower their costs. All they can do is restrict the access to particular procedures and care so that they are exposed to lower risks. So it will be harder to get an MRI. You can pay for it out of your own pocket, but they won't count it against your deductible. It's trying to get the market place to restrict your access to healthcare.

[rhett o rick]

3. Who is being taxed by this plan? The wage earner or company?

And how would that apply to federal workers?

[zipplewrath]

4. The company

Technically the company that is in effect "buying" the plan. In some cases that could be the labor union which is purchasing a plan with funds "contributed" by the employer.

Federal workers are relatively "exempt" in the sense that their plans fall below these targets generally, and that the government can't "tax" itself.

[ThomWV]

5. If I were looking for it I'd do a search on "Fuck the Unions"