Starting for the 2012 tax year, W-2 forms provided by employers (in the beginning of 2013) will show employees how much their health insurance costs. However, the reporting is for informational purposes only; employees will not be taxed on this amount. The requirement was originally set to go into effect for the 2011 tax year, but implementation was delayed by the Internal Revenue Service.

A separate provision of the health reform law creates a new tax on so-called "Cadillac" insurance plans provided by employers. Beginning in 2018, plans valued at $10,200 for individual coverage or $27,500 for family policies will be subject to an excise tax of 40% on the value of the plan that exceeds these thresholds. The tax will be levied on insurers and self-insured employers, not directly on employees.

The threshold amounts will be increased for inflation beginning in 2020, and may be adjusted upwards if health care costs rise more than expected prior to implementation of the tax in 2018. The thresholds are also adjusted upwards for retired individuals age 55 and older who are not eligible for Medicare, for employees engaged in high-risk professions, and for firms that may have higher health care costs because of the age or gender of their workers.

Financing and Taxes , Employers