Monday, April 05, 2010

Now the Globe is just pullin' my chain

Another day, another story from the Boston Globe about the pending problems with Obamacare. File this under "stuff we shoulda known two weeks ago": "Health tax may wallop towns"

Massachusetts municipalities that offer employees, retirees, and elected officials the most generous and costly health insurance plans will feel the squeeze of the new national health care law’s tax on "Cadillac" insurance plans.

A family health plan that costs more than $27,500 would be subject to a 40 percent tax on every dollar spent above that threshold. The tax, set to take effect in 2018, would be levied on insurers, who would probably pass it on to municipalities and other employers. A few cities and towns already have family plans that exceed $27,500, and many others are on track to surpass that level before the tax kicks in.

That means taxpayers in many communities could be facing thousands of dollars in additional costs for every employee, retired worker, and elected leader they cover, unless those communities move soon to scale back coverage, a change the law is designed to encourage.
Lucky for me, Obama promised he wouldn't raise taxes on Americans making less than $250,000. I'm in the clear, baby!

1 comment:

Anonymous said...

The Feds won't get much revenue from the cadillac tax.

These cadillac health plans will be removed in favor of other types of compensation when contracts are re-negotiated.


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