The WSJ had a good article by Emily Chasan about the ACA “Cadillac Tax” which goes into effect in 2018. While 2018 seems like a ways away I’m writing about that tax now because its going to be a real smack-down for some companies.
A plan sponsor will have a 40% excise tax on a plan that is deemed too rich. A plan is deemed too rich by the cost of the plan, not the design of it. Interesting. Writes Chasan, “The plans subject to the excise tax cost $10,200 for an individual or $27,500 for families….”
Problem is many plans cost more than that now, if for no other reason than they have an older-that-average workforce. Click here to read the full article.
This will have unintended consequences…big unintended consequences. Period.
Tom Emerick is the President of Emerick Consulting, LLC, and Partner and Chief Strategy Officer with Laurus Strategies, a Chicago-based consulting firm, and cofounder of Edison Health. Prior to starting his consulting career, Tom was with Walmart Stores, where his last position was Vice President, Global Benefit Design, which involved designing and managing benefits for over 1.3 million employees in the U.S., and 300,000 plus in international. For about six years, Tom also headed up Walmart’s Six Sigma and process improvement initiatives. Prior to Walmart, Tom had positions with Burger King Corporation, British Petroleum, and American Fidelity Assurance Company. In 2009, Tom was named by Healthspottr as one of the top 100 innovators in healthcare the US for his work on medical ethics. In December 2012, Tom was listed in Forbes.com as one of 13 unsung heroes changing healthcare forever.