Looking Ahead: What All Employers Need to Know About the Cadillac TaxInside Counsel June 30, 2015
Mark E. Lutes, Chair of the firm’s Board of Directors and a Member of the firm’s Health Care and Life Sciences practice, and Adam C. Solander, a Member of the Firm in the Health Care and Life Sciences practice, in the firm’s Washington, DC, office, authored an article in Inside Counsel, titled “Looking Ahead: What All Employers Need to Know About the Cadillac Tax.”
Following is an excerpt:
The “Cadillac tax” is an excise tax that is going to force companies to deeply examine the costs of their health benefit plan. In-house counsel who are familiar with the timing of this risk and the need to evolve plan design and purchasing methods to reduce exposure will be good partners to their internal clients who will be evaluating plan design changes and purchasing alternatives as they seek to limit this exposure.
There is little doubt that the Affordable Care Act (ACA) has changed the way employers offer healthcare benefits to their employees. Since its passage, the ACA has forced most employers to provide richer benefits and, in some cases, benefits to more employees. To date, these changes have largely been the result of the employer mandate requirement to provide coverage to employees who average at least 30 hours a week and various market reforms, such as essential benefits and dependent coverage to age 26 that must be reflected in employer-provided coverage.