‘Cadillac Tax’ Delay Gives Employers Relief

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Employers and their staff will get some relief for another few years from the impending “Cadillac” health insurance tax after Congress approved a delay as part of the budget deal it approved. President Obama has said he will not veto the new budget, which means that the excise tax will not take effect until 2020, instead of 2018. While some analysts predict that the delay is a precursor to an outright repeal of the tax, benefits experts say it is unlikely to dampen ongoing efforts by employers to rein in their health insurance costs. Under the Affordable Care Act, the…
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Drug Inflation May Push Many Plans into Cadillac Tax Territory

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As health care inflation starts to climb again, more health plans are likely to breach the Cadillac tax threshold. A new report by the consulting firm Milliman predicts that a typical family of four covered by an employer-sponsored preferred provider organization (PPO) health plan will incur health care costs in excess of $25,000 by 2016, which is just a few thousand dollars shy of the Cadillac tax threshold of $27,500 for a family of that size. While 2014 marked one of the lowest rates of health care cost inflation on record at 5.4%, Milliman notes that costs have increased 6.3%…
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