Coming Decisions on Healthcare

Excise tax looms in 2018; state exchanges arrive sooner.

While companies will be coping with many changes in employee health insurance brought on by the U.S. healthcare reform enacted in 2010, their biggest concern is the excise tax looming in 2018. Starting that year, companies will have to pay a 40% tax on the value of health coverage that costs more than $10,200 for individuals and $27,500 for family plans.

Given the current cost of health insurance and the pace at which medical costs are increasing, “many of the employers we work with will hit this threshold,” says Jeanne Wyand, a senior consultant at Towers Watson.

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