High Cost Employer-Sponsored Health Coverage Excise Tax

Explanation

Under Section 9001 of the ACA, health insurance issuers and sponsors of self-funded group health plans will be assessed an excise tax on any benefits provided to employees that exceed a pre-determined threshold.  This is the same tax that the general media has labeled as the “Cadillac” tax. The excise tax is imposed beginning in 2018.

Questions and answers

  • What is the definition of "excess benefit"? 
  • Do any exceptions apply? 
  • Who is responsible for paying the excise tax? 

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