Excise Tax on High-Cost Employer-Sponsored Health Coverage
Beginning in tax year 2018, there will be a 40% nondeductible excise tax on insurance companies and plan administrators for any health coverage plan where the premiums exceed the following amounts:
Single Coverage: $10,200
Single Coverage, high-risk employment or retired age 55 and older: $11,850
Family coverage: $27,500
Family coverage high-risk employment or retired age 55 and older: $30,950
The tax would apply to self-insured plans and plans sold in the group market, but not to plans sold in the individual market (except for coverage eligible for the deduction for self-employed individuals). Stand-alone dental and vision plans would be disregarded in applying the tax. The dollar amount thresholds may be later adjusted for inflation.
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