Under PPACA, in 2018, insurers will be taxed tax on the amount of premiums above certain thresholds. What percentage will they be taxed at?
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A) 20 percent
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B) 30 percent
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C) 40 percent
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Employers will be hit with a 40 percent excise tax on the value of total health care premiums in excess of fixed threshold limits of $10,200 per employee per year for individual coverage and $27,500 for family coverage.
Employer and employee contributions to medical and pharmacy benefits, flexible spending accounts, employer contributions to health savings accounts or health reimbursement arrangements, and benefits obtained at worksite clinics are all subject to the tax.
[see also: Employers confront costliest reform provisions]
D) 50 percent
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