AnonymousOne: What are the ethical points of view regarding the taxation of Cadillac health plans?
This is for a school project and I’m having trouble finding sources or articles discussing the ethical theories and principles related to the upcoming taxation of Cadillac health care plans. Any help would be greatly appreciated!
Answers and Views:
Answer by rejectedredux
This page lays it out pretty well and gives some other references to look at.
https://en.wikipedia.org/wiki/Cadillac_insurance_plan
Answer by markBecause Cadillac health plans are typically offered to senior executives and the wealthy. At this time, all premiums paid for these plans are pre-tax (untaxed). Plus a significant portion of the premiums are typically employer paid.
Compare that to the average person that has a plan that costs them far more in out of pocket costs that are NOT tax deductable until they exceed 7.5% of their AGI. Coupled with the fact that the employer pays a smaller percent of the premium (so the employee pays more).
Or compare it to a person that has NO medical through work and pays the whole thing by himself. He still gets no tax deduction until the deduction exceeds 7.5 percent of his AGI plus none of his premiums are deductible before that threshold is reached
In the end, you have rich people going to the best (most expensive) doctors with a health plan that covers virtually all costs and costs them nothing. You have poor people paying far more for health plans that are forced to see in-network doctors and have far more costs.
In my opinion, these plans are most certainly a taxable benefit.
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