Policy

Union Health Plans Hit by Hefty Obamacare Tax

Forty percent levy kicks in starting in 2018

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Deep in the list of taxes that the president's Obamacare plan will hit Americans with is a 40 percent excise tax on health plans typical union members have, especially in Midwest states, according to a new analysis.

The Obamacare tax won't take place until 2018, but when it does it will smack high cost, or so-called "Cadillac" health insurance plans, according to the group Americans for Tax Reform.

"This tax will most directly affect union families and early retirees, who are likely to be covered by such plans," said ATR in a review of upcoming tax cuts in the health reform package set to go into effect in January. It will target plans whose premiums exceed exceed $10,200 for an individual and $27,500 for a family.

"Middle class union members tend to be covered by such plans in states like Ohio, Pennsylvania, Wisconsin, and Michigan," said ATR.