Obamacare attempts to change this dynamic. Under the law, health plans that cost over $10,200 for an individual or $27,500 for a family will have to pay an excise tax of 40 percent on every dollar that they exceed that cutoff beginning in 2018. As Jonathan Gruber, an MIT economics professor who helped design the law, explained to the New York Times, the tax is meant to reorient the way that employers approach their workers’ health problems and their associated costs. “It’s focusing employers on cost control, not slashing,” said Gruber.
http://thinkprogress.org/health/2013/05/28/2064441/employers-obamacare-cut-wasteful-spending/
9: What is a “Cadillac Health Plan”?
The PPACA imposes a 40 percent excise tax on “Cadillac” health insurance plans. This new tax will apply to health plans valued in excess of $10,200 for individuals and $27,500 for families. Those thresholds will grow annually by inflation plus 1 percent. The tax takes effect in 2018.
http://www.cpehr.com/affordable-care-act-obamacare-for-business
Congress to get Obamacare exemption
http://www.marketwatch.com/story/congress-to-get-obamacare-exemption-report-2013-08-02?dist=tcountdown
LOS ANGELES (MarketWatch) -- The White House has approved a deal that will exempt members of Congress and their staff from some of the provisions of the Affordable Care Act, Politico reported late Thursday. Under the law, popularly referred to as Obamacare, lawmakers and their aides were required to source health insurance "created" by the law or offered through one of its exchanges, and without the subsidies they currently enjoy, the members of Congress would have faced thousands of dollars in additional premium payments each year, the report said. However, the Office of Personnel Management now plans to rule that the government can continue to make a contribution to the health-care premiums of the lawmakers and their staff, it said, citing unnamed congressional sources and a White House official.
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