Mark Lutes, a Member of the Firm in the Health Care and Life Sciences practice, in the Washington, DC, office, and Adam Solander, an Associate in the Health Care and Life Sciences practice, in the Washington, DC, office, coauthored an article titled “Cadillac Tax Could Jeopardize the Viability of Employer-Based Plans.”
Following is an excerpt:
It has been roughly two-and-a-half years since the Affordable Care Act (”ACA”) was enacted. Since that time, employers have focused primarily on the immediate compliance and implementation issues, as well as preparing their health benefit plans for 2014, when a majority of the law’s employer-centric provisions take effect. This focus on compliance, while necessary, may have caused some employers to lose sight of what may be the issue with the greatest long-term impact on their health benefit plans. To date, the ”Cadillac Tax” provision, which is one of ACA’s principal ”Pay Fors,” has been largely ignored. While its 2018 implementation date may appear distant, it is time for employers to act to lower costs and avoid the tax.
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