- Bjork Group
What Does The Cadillac Tax Mean To You?
Recent changes to the Cadillac Tax give employers needed time to get ahead of the curve.
While the deferral of the Cadillac Tax until 2020 gives employers breathing room, don't go in without a plan. A recent Towers Watson Survey stated that only two in five employers have done any modeling in order to prepare for the tax which will be a non-deductible 40% excise tax on all health insurance plans that cost more than $10,800 for an individual and $29,100 for families. Take this opportunity to implement a multi-year plan to stay ahead of the curve or risk running off the road in 2020! Download our eBook now for free strategies and insight into how to get started.
In a recent piece released by the NAHU the dramatic differences between the law's intention and it's projected impact were outlined.
Highlights include:
Plans Targeted:
Initially only targeting 3% of plans*, the tax is now projected to affect between 47% and 58% of plans.**
*(http://cqrcengage.com/nahu/cadillactax)
Who will be affected?
Sr. White House Advisor David Axelrod was quoted in 2009 stating that the tax was "An excise tax on executives at Goldman Sachs"*
In reality the tax will hit a higher percentage of state and local government employers - like schools and police departments - than finance firms.**
*(http://www.nytimes.com/2009/07/27/health/policy/27insure.html?_r=4)
**(http://inq.sagepub.com/content/48/4/322.long 12% vs 9%, pg 328)
What to do next?
With an estimated 74% of employers being hit by the tax in 2022*, now is the time to create a multi-year strategic benefits plan to understand your exposure and get ahead of the curve or risk running off the road. Download our eBook for free strategies and insights to get started and contact us learn more!
*United Benefit Advisors 2015 Health Plan Survey
