Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I was looking at my W2 today and there is a new line item code "DD" "value of your employer provided healthcare". Very interesting. Clearly this is a result of the healthcare act, and there are a lot of possible reasons:
- just to inform you how valuable an benefit it is so you are really appreciate your employer
- to get you read for when your employer drops you and you have to find it on your own
- to prepare you to be taxed on it in the future.
- to show you if you have a "Cadillac" plan that is going to receive a surcharge (unless you are a union or in Pelosi's district and can get an exemption from HHS)

What think we? What is most likely reason?

The Patient Protection and Affordable Care Act (as amended by the Health Care and Education Reconciliation Act of 2010) imposes an annual excise tax on plans with premiums exceeding $10,200 for individuals or $27,500 for a family (not including vision and dental benefits) starting in 2018

So unions are asking for exemptions because their plans are worth more than $27,500 for the families???? Wow!

Looks like 2018 is when it kicks in - 40% excise tax. I wonder if the values are inflation adjusted, or we will all be eventually paying it as insurance costs increase?

Effective in 2018

Health insurance excise tax. This steep 40-percent tax will be levied on so-called expensive "cadillac" health plans. The tax is not paid by the individual but by the insurance provider. But it could have an impact on the premiums and availability of these plans. The tax would be levied on premiums above threshold levels that were set at $10,200 for individual policies and $27,500 for policies covering multiple family members. These figures will be adjusted upward to reflect increases in healthcare costs that occur between now and when the tax takes effect in 2018.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.