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I have a Cadillac, and didn't know it...

Hellgate

Hellgate

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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.

Oh and my company, and most large companies will begin paying 20 new taxes this year.

Nice...

Rant over...
 
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Health care ruling gives GOP new attack line -- taxes - CNN.com

"At least four million people are expected to pay a tax penalty when the rule takes full effect in 2016, "

http://healthreform.kff.org/faq/wil...nce-premium-that-is-paid-by-the-employer.aspx

they should be showing you what it will be...

uhm, is your employer jumping the gun? That's not supposed to happen yet???


I just don't get it either... "you must have insurance, or pay a penalty, but if you have good insurance, you're going to pay too".....
 
The value of health benefits being reported on the W2 I'm pretty sure isn't being taxed, at least not anytime soon.

The "Cadillac" tax doesn't go into effect until 2018 and is the employer's responsibility (though that doesn't mean they can't pass that on in the form of higher contributions). Most are planning on doing something to avoid this tax.

The amount that can be put aside for health spending accounts has been reduced I'm ok with - because that money was use it or lose it. With so many more plans going for the high deductible / health savings account eligible designs, one of those is a better option than these other spending accounts anyway.
 
Hellgate said:
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.

Oh and my company, and most large companies will begin paying 20 new taxes this year.

Nice...

Rant over...
Click to expand...

Hey, not talking about Tricare are you?? Do you use your company instead?
 
Good call on the 2018 start date. I find it odd that HR spent so much time on this when it doesn't go into effect for 6 more years. I guess it is the fact that the "value" appears on the W2 for 2012.

"Remember, I'm from the Government and I'm here to help."

FZ1yb - No not yet, not until age 60, 12 more years. I'm a retired Reservist, even though I've deployed more than many AD retirees. It is what it is.
 
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I was forced to retire on my 1st day of eligibility and can assure you that every year since then, I've paid taxes on my health "benefit" - maybe active employees are treated differently, but Washington's thirst for tax money is so intense, I doubt it. Look really hard at your W2 this time around.


And now that I'm self employed, I get to pay my share and the employers share. I'm looking real hard at next year and the proposed tax changes - if I don't get a full time contract, its prob going to be the end for me - full retirement. The taxes for part time consulting make what I wind up with just not worth the trouble.
 
Duster_360 said:
I was forced to retire on my 1st day of eligibility and can assure you that every year since then, I've paid taxes on my health "benefit" - maybe active employees are treated differently, but Washington's thirst for tax money is so intense, I doubt it. Look really hard at your W2 this time around.


And now that I'm self employed, I get to pay my share and the employers share. I'm looking real hard at next year and the proposed tax changes - if I don't get a full time contract, its prob going to be the end for me - full retirement. The taxes for part time consulting make what I wind up with just not worth the trouble.
Click to expand...

Yes, indeed, employees are treated differently. The company gets to deduct the cost of health care from their income so it becomes cheaper for them, an individual gets no such tax break and thus overpays relative to the company. That was an issue when all these changes were being planned but no one looked out for the individual, the companies were protected.

I'm not sure how it works for this year but everyone does need to carefully review their W-2 from here forward, we are going to get taxed more and more each year, that's the way the plan was set up, to delay these taxes until after this upcoming election. And then, SURPRISE.
 
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