ALBUQUERQUE, N.M. (AP) - New Mexico cities could have to pay significantly more money to comply with the Affordable Care Act when the law’s “Cadillac Tax” for expensive health plans takes effect.
The Albuquerque Journal reports (https://bit.ly/2eYUfSZ ) that starting in 2020, the law will impose a tax on high-cost insurance plans.
Estimates for Albuquerque show the city won’t face the tax until 2024. The city’s $1 million payment to comply with the law is expected to drop slightly next year before steadily increasing until 2024, when Albuquerque could be paying as much as $4 million.
Those concerned about the tax say it could result in employers offering workers less expensive plans with higher deductibles or reducing what services are covered.
Supporters say it’ll encourage more efficient health care spending and could put more money into workers’ pockets.
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Information from: Albuquerque Journal, https://www.abqjournal.com
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