Healthcare

Tax cap on health benefits on the way

Get ready for a cap on the tax free benefit you can get from your employer health plan. A tax cap is becoming more and more likely. The expectation now is that it will be at about $13,000 in the first year. But here is the catch; the cap will count employer contributions, employee pre-tax contributions and contributions toward an FSA and HRA.

Forget what you hear from Republicans, they can’t do a thing, the Democratic majority and congressional rules allow the Democrats to do as they want.

Needless to say this means more administration for employers, especially self-insured plans that will have to make the calcuations and no doubt support them to the federal government in some way.

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Categories: Healthcare

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