Controversies have been abundant lately regarding the Patient Protection and Affordable Care Act, also known as Obamacare. But with so many people focused on the immediate issues surrounding the rollout of health care insurance exchanges, few are looking at other impacts the law will have down the road, including the Obamacare Cadillac tax on high-value employer-provided health insurance.
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, takes a closer look at the Obamacare Cadillac tax and its impact on you and your health insurance coverage. Dan notes that Obamacare imposes a 40% excise tax on employers that provide insurance coverage that costs more than $10,200 for single policies or $27,500 for family policies. Even though the tax doesn't take effect until 2018, employers are already taking steps to address it. Dan discusses recent moves by Walgreen (NASDAQ:WBA) to move workers to private health-insurance exchanges, as well as Boeing's (NYSE:BA) concerns about the impact on the benefits it will provide to employees. Dan concludes with a look at the impact on UnitedHealth (NYSE:UNH), WellPoint (NYSE:ANTM), and other insurers, which stand to lose out if high-priced policies fall by the wayside.