The Cadillac Plan tax is a 40% non-deductible excise tax on the value of employer-sponsored health insurance coverage that exceeds $10,200 for self-only coverage and $27,500 for coverage other than self-only (e.g., family coverage). It has been officially delayed for two years (until January 1, 2020).
Additionally, the following have been approved:
- Permits a tax deduction on any assessment of the Cadillac Plan tax under the Tax Code.
- Authorizes a study of the age and gender adjustment benchmarks related to the Cadillac Plan tax.
- Suspends the medical device excise tax for two years and the annual fee on health insurance providers (the Health Insurer Tax) for one-year.
- Delays the Health Insurer Tax for one year.
- Extends parity between mass transit and parking benefits under Code section 132(f) – $255 a month in 2016
For a copy of the signed bill, visit:
Consolidated Appropriations Act of 2016
Protecting Americans from Tax Hikes Act of 2015 http://docs.house.gov/billsthisweek/20151214/121515.250_xml.pdf