Cadillac med plan = more income

RACER X · 11-01-2012, 10:57 PM

Read this on the Aprilia board, and it would prob. Apply to "us" as well

Quote:

Originally Posted by Hellgate

I found out today the my health insurance plan is now considered a "Cadillac" plan. Not really sure what a "Chevy" plan would be as my "Cadillac" plan is like what I've had for the last 20 years.
As a result of owning a "Cadillac", I will now have $16,500 of income value added to my W-2, resulting in paying more income tax. At the same time the amount one can set aside for a Health Spending Account has been cut in half from $5,000 to $2,500.
Nice...

Anybody know about this, our med FSA also has dropped too

fasternyou929 · 11-01-2012, 11:43 PM

You're just finding out about FSA now? Did you know capital gains taxes are going up, too?

Scary how uninformed the below-average voter is.

Particle Man · 11-02-2012, 12:31 AM

Yep. The Sheeple bought into the whole Health Care reform and this is the result.

goof2 · 11-02-2012, 01:01 AM

As I understand it the guy is half right. I believe the government is going to start adding the value of health insurance plans to everyone's W-2, but it is only a part of gross income and is not taxable. Unless something changes in 2018 a tax will start on high value "Cadillac" health plans. The tax will be on the value of the plan over that threshold amount and will be paid by the insurance companies, not the individual with the plan. Of course that tax will ultimately have to come from higher rates for those insured by that insurance company.

Yes, the max amount that can qualify for a Flexible Spending Account (FSA) will be reduced. They are also placing more restrictions on what FSA funds can be spent on.

RACER X · 11-02-2012, 07:27 AM

http://healthreform.kff.org/faq/will...-employer.aspx

Will employees be taxed for the portion of the health insurance premium that is paid by the employerStarting for the 2012 tax year, W-2 forms provided by employers (in the beginning of 2013) will show employees how much their health insurance costs. However, the reporting is for informational purposes only; employees will not be taxed on this amount. The requirement was originally set to go into effect for the 2011 tax year, but implementation was delayed by the Internal Revenue Service. A separate provision of the health reform law creates a new tax on so-called "Cadillac" insurance plans provided by employers. Beginning in 2018, plans valued at $10,200 for individual coverage or $27,500 for family policies will be subject to an excise tax of 40% on the value of the plan that exceeds these thresholds. The tax will be levied on insurers and self-insured employers, not directly on employees.The threshold amounts will be increased for inflation beginning in 2020, and may be adjusted upwards if health care costs rise more than expected prior to implementation of the tax in 2018. The thresholds are also adjusted upwards for retired individuals age 55 and older who are not eligible for Medicare, for employees engaged in high-risk professions, and for firms that may have higher health care costs because of the age or gender of their workers.

OneSickPsycho · 11-02-2012, 09:14 AM

Hey, at least it's super easy to understand...

LeeNetworX · 11-02-2012, 10:32 AM

I don't use FSA myself but on a related topic my out of pocket cost to provide health insurance to my family is going up 44% in 2013.

RACER X · 11-02-2012, 11:06 AM

Quote:

Originally Posted by LeeNetworX

I don't use FSA myself but on a related topic my out of pocket cost to provide health insurance to my family is going up 44% in 2013.

lee, we max our childcare FSA $5k, and whatever we think we need for healthcare.

can't hurt

whats it going up to? we're at $380/mos for 2013, same as 2012

pauldun170 · 11-02-2012, 11:18 AM

Quote:

Originally Posted by LeeNetworX

I don't use FSA myself but on a related topic my out of pocket cost to provide health insurance to my family is going up 44% in 2013.

We are gong to a "consumer directed" plan which means when someone shows up with the bill, they direct them to the consumer.

All wellness visits are now free. Everything else (after hitting a the new mega deductible) is 80\20 split.

So, if you are healthy and only go to the doctor to catch up on how each others families are doing then your cost get chopped in half.
If you do something silly like get hurt or sick, I can see bankruptcy in your future.

As a result, I'm going from the FSA I had last year to an HSA.

Tmall · 11-02-2012, 09:42 PM

Sure is complicated to get sick down there.

11-02-2012, 12:31 AM	#3
Particle Man Custom User Title Join Date: Nov 2008 Location: Central NY Moto: 2003 SV650S Posts: 14,959	Yep. The Sheeple bought into the whole Health Care reform and this is the result. __________________ I'm not "fat." I'm "Enlarged to show texture." Handle every stressful situation like a DOG: If you can't eat it or hump it, pi$$ on it & walk away.

11-02-2012, 07:27 AM	#5
RACER X AMA Supersport Join Date: Nov 2008 Location: Richmond, Tx Moto: '10 Tuono Factory Posts: 4,569	http://healthreform.kff.org/faq/will...-employer.aspx Will employees be taxed for the portion of the health insurance premium that is paid by the employerStarting for the 2012 tax year, W-2 forms provided by employers (in the beginning of 2013) will show employees how much their health insurance costs. However, the reporting is for informational purposes only; employees will not be taxed on this amount. The requirement was originally set to go into effect for the 2011 tax year, but implementation was delayed by the Internal Revenue Service. A separate provision of the health reform law creates a new tax on so-called "Cadillac" insurance plans provided by employers. Beginning in 2018, plans valued at $10,200 for individual coverage or $27,500 for family policies will be subject to an excise tax of 40% on the value of the plan that exceeds these thresholds. The tax will be levied on insurers and self-insured employers, not directly on employees.The threshold amounts will be increased for inflation beginning in 2020, and may be adjusted upwards if health care costs rise more than expected prior to implementation of the tax in 2018. The thresholds are also adjusted upwards for retired individuals age 55 and older who are not eligible for Medicare, for employees engaged in high-risk professions, and for firms that may have higher health care costs because of the age or gender of their workers. __________________ ΜΟΛΩΝ ΛΑΒΕ 2014 GROM! 181cc of FURY 2010 Aprilia Tuono Factory - SOLD 2009 SFV Gladius - SOLD 2008 Hayabusa - SOLD.

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11-01-2012, 11:43 PM	#2
fasternyou929 SFL Expatriate #2 Join Date: Nov 2008 Location: Raleigh, NC Moto: CBR1000 Posts: 2,043	You're just finding out about FSA now? Did you know capital gains taxes are going up, too? Scary how uninformed the below-average voter is.

11-02-2012, 01:01 AM	#4
goof2 AMA Supersport Join Date: Feb 2009 Posts: 4,756	As I understand it the guy is half right. I believe the government is going to start adding the value of health insurance plans to everyone's W-2, but it is only a part of gross income and is not taxable. Unless something changes in 2018 a tax will start on high value "Cadillac" health plans. The tax will be on the value of the plan over that threshold amount and will be paid by the insurance companies, not the individual with the plan. Of course that tax will ultimately have to come from higher rates for those insured by that insurance company. Yes, the max amount that can qualify for a Flexible Spending Account (FSA) will be reduced. They are also placing more restrictions on what FSA funds can be spent on.

11-02-2012, 09:14 AM	#6
OneSickPsycho Ride Like an Asshole Join Date: Feb 2008 Moto: nothing... Posts: 11,254	Hey, at least it's super easy to understand...

11-02-2012, 10:32 AM	#7
LeeNetworX SFL Expatriate #1 Join Date: Nov 2008 Location: ATL Burbs Moto: '09 Triumph Speed Triple Posts: 4,712	I don't use FSA myself but on a related topic my out of pocket cost to provide health insurance to my family is going up 44% in 2013.

11-02-2012, 09:42 PM	#10
Tmall Aspiring Rapper Join Date: Nov 2008 Location: Halifax, NS Moto: '12 CB1000R Posts: 3,569	Sure is complicated to get sick down there.