Think Health Care Reform only applies to large employers? Think again!: The Cadillac Tax applies to all plans that exceed $10,200 for an individual and $27,500 for a family.

Although this tax is set to take place in 2018 and there may be modifications before that time, it is important that employers begin considering its impact now. Many employers are already preparing by making changes to the level of plans they are offering and finding other ways to enhance benefits for employees who will be affected.

This excise tax, also known as the Cadillac Tax, is a 40% tax on health insurance spending above $10,200 for individual and $27,500 for family. This, apparently, will increase relative to the Consumer Price Index but will not be related to regional premium variations or cost of living adjustments.

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