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Health tax may wallop Massachusetts towns

Boston Globe, April 5, 2010

Massachusetts municipalities that offer employees, retirees, and elected officials the most generous and costly health insurance plans will feel the squeeze of the new national healthcare law's tax on "Cadillac" insurance plans, the Boston Globe reports. A family health plan that costs more than $27,500 would be subject to a 40% tax on every dollar spent above that threshold. The tax, set to take effect in 2018, would be levied on insurers, who would probably pass it on to municipalities and other employers. A few cities and towns already have family plans that exceed $27,500, and many others are on track to surpass that level before the tax kicks in, reports the Globe.