Adam Solander Quoted in “Employers Will Need to Pull Multiple Levers to Avoid ACA’s Excise Tax, Practitioners Say” – Bloomberg BNA’s Daily Tax ReportBloomberg BNA's Daily Tax Report October 22, 2014
Adam C. Solander, Associate in the Health Care and Life Sciences practice, in the Washington, DC, office, was quoted in Bloomberg BNA’s Daily Tax Report, in "Employers Will Need to Pull Multiple Levers to Avoid ACA's Excise Tax, Practitioners Say," by Sean Forbes.
Following is an excerpt:
“There's not going to be one lever that an employer can pull to bend the cost curve,” said Adam C. Solander, an associate in the health care and life sciences practice in the Washington office of Epstein Becker & Green PC.
The excise tax, which has been referred to as the “Cadillac” tax since its inception, has now been renamed by some with more middle-class status names, such as the “Camry” tax, “Corolla” tax or “Chevy” tax, because they say health care plans that offer more modest benefits may also be subject to the tax.
Nearly half of U.S. employers with 5,000 employees or more expect to trigger the ACA tax in 2018 and 82 percent by 2023, a recent Towers Watson survey found (185 DTR G-5, 9/24/14).
Levers that employers can pull to protect themselves from the excise tax include wellness strategies targeting areas that drive plan costs; delivery of medical services to patients by interactive audio, video and other technology; and implementation of new procedures to pay for benefits, Solander said.
Success will mean a healthier workforce and therefore “a healthier bottom line for employers,” Solander said, while failure could mean that employers “may find it very hard to justify health benefits” when they hit the excise tax.