Beginning in 2018, the portion of any annual health insurance premium that exceeds $10,200 for individual coverage and $27,500 for family coverage will be taxed at 40%. For example, for a family plan with an annual premium of $30,000 the employer would be required to pay a 40% tax on the amount above $27,500 ($2,500) or $1,000. Although after 2018, the thresholds will be adjusted annually for the Consumer Price Index (CPI), the number of new individuals who find themselves having to pay this large surtax will grow rapidly, since the MCPI (Medical Consumer Price Index) is projected to increase faster than the overall CPI. This was not anticipated by policy makers, and as a result the assumptions that few plans would hit the threshold or that this excise tax would impact only the wealthiest Americans is looking equally inaccurate.