Cadillac Tax Could Jeopardize the Viability of Employer-Based Plans

October 10, 2012Article

Mark Lutes and Adam Solander of EBG Advisors coauthored a recent article in Bloomberg BNA's Health Insurance Report, "Cadillac Tax Could Jeopardize the Viability of Employer-Based Plans."

Following is an excerpt:

It has been roughly two-and-a-half years since the Affordable Care Act (‘‘ACA'') was enacted. Since that time, employers have focused primarily on the immediate compliance and implementation issues, as well as preparing their health benefit plans for 2014, when a majority of the law's employer-centric provisions take effect. This focus on compliance, while necessary, may have caused some employers to lose sight of what may be the issue with the greatest long-term impact on their health benefit plans. To date, the ‘‘Cadillac Tax'' provision, which is one of ACA's principal ‘‘Pay Fors,'' has been largely ignored. While its 2018 implementation date may appear distant, it is time for employers to act to lower costs and avoid the tax.

Download the full PDF here.