Fast Facts
- Dubbed the "Cadillac Tax" since it is an excise tax on high cost health plans offered by employers
- Passed as part of the Affordable Care Act (ACA) and meant to help pay cover costs of the ACA and slow down growing healthcare costs
- Goes into effect in 2020
- Will be 40% of the difference between the total cost of the yearly health benefits of an employee and the threshold
- The initial threshold for self-only (single) coverage is $10,200 and $27,500 for non-single coverage
- Thresholds will increase annually with inflation
- Do you have a "Cadillac" health plan? Check out our Cadillac Tax Calculator!
Learn much more about the Cadillac Tax and the controversies surrounding it by viewing additional pages on this website.