Obamacare and the Supreme Court

[beefytee]

A handy listing of tax hikes resulting from the ironically-named Affordable Care Act.

Here is the one that I believe is affecting me:

$32 Billion: Excise Tax on Comprehensive Health Insurance Plans (Takes effect Jan. 2018): Starting in 2018, new 40 percent excise tax on “Cadillac” health insurance plans ($10,200 single/$27,500 family). Higher threshold ($11,500 single/$29,450 family) for early retirees and high-risk professions. CPI +1 percentage point indexed. Bill: PPACA; Page: 1,941-1,956

I recently moved to a large company that has amazing benefits including health insurance that they cover 100%. It also covers most any procedure 100%.

Anyways next year, they are discontinuing the plan in favor of a HSA where they give us something like $3500 that we use until it is depleted and then most procedures are covered at 90%. They haven't said that the change is because of Obamacare, but it makes sense that they would be trying to avoid/limit paying this tax. There were rumors that if Obamacare were overturned, they would have kept the old plan.

I'm not trying to complain as the new plan is way better than I was getting at my last work and I do like HSAs in principle as they allow individuals to control costs, but of course this will affect our pocket book.

[New Mexican Disaster]

Kind of like how the wealthy won't be paying the excessive taxes Obama is trying to impose, because there won't be any wealthy people left. So is that a penalty on wealth, then?

There is tons of evidence that this is what will happen.

[calicoug]

Here is the one that I believe is affecting me:



I recently moved to a large company that has amazing benefits including health insurance that they cover 100%. It also covers most any procedure 100%.

Anyways next year, they are discontinuing the plan in favor of a HSA where they give us something like $3500 that we use until it is depleted and then most procedures are covered at 90%. They haven't said that the change is because of Obamacare, but it makes sense that they would be trying to avoid/limit paying this tax. There were rumors that if Obamacare were overturned, they would have kept the old plan.

I'm not trying to complain as the new plan is way better than I was getting at my last work and I do like HSAs in principle as they allow individuals to control costs, but of course this will affect our pocket book.

I suspect your health plan is not a "cadillac plan," though it's obviously possible.

The tax on cadillac plans largely targets union plans. Employers for years have funneled more money into health care for employees as a substitute for raising employee wages. This is particularly true for union employees. Health care contributions are tax favored making the overall payment by employers cheaper than direct payroll increases. By taxing the high plans, the incentive for pushing wages into high cost health care plans is lowered. Consequently, employers reach a point where it makes more sense to increase wages rather than health care contributions.

High cost insurance plans are also disfavored because employees who have them have almost no incentive to be judicious in using health care resources. Often, out of pocket costs under such plans are almost non-existent.

[calicoug]

My apologies; I'll be sure to run any future submissions by you first so you can tell me if I am being rational enough for the likes of CUF.

Let's save us both time. Instead we can just start with the guiding principle that worrying America may soon not have any wealthy people left is both irrational and a direct result of employing too much hyperbole.

[All-American]

Let's save us both time. Instead we can just start with the guiding principle that worrying America may soon not have any wealthy people left is both irrational and a direct result of employing too much hyperbole.

Well, I guess I can relax, then. Whew!

[calicoug]

Well, I guess I can relax, then. Whew!

You used to be wittier too. I'll assume your signature line says something raucously hilarious and will give you a pass on this post.

[Uncle Ted]

[Uncle Ted]

I suspect your health plan is not a "cadillac plan," though it's obviously possible.

The tax on cadillac plans largely targets union plans. Employers for years have funneled more money into health care for employees as a substitute for raising employee wages. This is particularly true for union employees. Health care contributions are tax favored making the overall payment by employers cheaper than direct payroll increases. By taxing the high plans, the incentive for pushing wages into high cost health care plans is lowered. Consequently, employers reach a point where it makes more sense to increase wages rather than health care contributions.

High cost insurance plans are also disfavored because employees who have them have almost no incentive to be judicious in using health care resources. Often, out of pocket costs under such plans are almost non-existent.

Hmm... I thought the unions got a five year exemption (to 2018) on this one. (Obama didn't want to lose that union vote.)

[Moliere]

That's exactly like the mortgage interest deduction :rollseyes:

[Uncle Ted]

That's exactly like the mortgage interest deduction :rollseyes:

So if I elect to not pick up the proper amount of health insurance then I am simply doing something like "renting". Lots of people rent instead of buy homes and pay mortgages.

Maybe it should have been structured as a tax deduction for people that can't think about it in that way. I.e. Tax the mandate amount but give a deduction for the same amount if they have the proper amount of health insurance.

[All-American]

You used to be wittier too. I'll assume your signature line says something raucously hilarious and will give you a pass on this post.

It's really too bad, isn't it. I was doing so well, even just a page ago, when you were agreeing with me. Weird how once somebody stops saying stuff that you agree with, they're no longer witty, rational, or reasonable.

[calicoug]

It's really too bad, isn't it. I was doing so well, even just a page ago, when you were agreeing with me. Weird how once somebody stops saying stuff that you agree with, they're no longer witty, rational, or reasonable.

First of all, you sound like a guy the day after he claimed to have seen aliens complaining that just a day ago his friends thought he was rational.

Second, in no way did I agree with you one page ago. You've been off your game since you tried arguing terrorists were rational and would be scared off if we only had a bigger military. Take a day. Recover. Then get back in the saddle. Remember- it's not falling off the horse that people will remember.

[calicoug]

So if I elect to not pick up the proper amount of health insurance then I am simply doing something like "renting". Lots of people rent instead of buy homes and pay mortgages.

Maybe it should have been structured as a tax deduction for people that can't think about it in that way. I.e. Tax the mandate amount but give a deduction for the same amount if they have the proper amount of health insurance.

I can't tell if you are being sarcastic, but I agree with what you wrote. Of course, we can all guess the reason it was structured as a penalty rather than a deduction is that a tax increase would have been required to offset the deduction and that would have been even worse politically.

[DU Ute]

It's really too bad, isn't it. I was doing so well, even just a page ago, when you were agreeing with me. Weird how once somebody stops saying stuff that you agree with, they're no longer witty, rational, or reasonable.

I thought he was just mis-remembering stuff fro CG.

[Pelado]

Then get back in the saddle. Remember- it's not falling off the horse that people will remember.

Don't be so sure. A good fall is hard to forget.