The Obama administration's health care law focuses on providing millions of uninsured Americans with health insurance coverage by 2014. An unintended consequence may be the reduction of coverage for some Americans already insured.
The Act contains a "Cadillac Tax" starting in 2018. An employer whose health insurance plan cost more than $10,200 for an individual or $27,500 for a family annually would typically pay a 40 percent excise tax on the amount exceeding the threshold.
In an effort to avoid the tax, employers will move to less expensive plans that have higher deductibles and copayments. The idea is to encourage employers to move away from plans that insulate workers from the cost of care and can lead to excessive tests and procedures.
The Russell Agency is a full service independent insurance agency serving Southport, Fairfield, Westport and all of Connecticut. Please contact us to learn more about health insurance for your family or business.