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Daily Archives: November 1, 2014

Impact of So-Called 'Cadillac' Tax

The tax on high-cost health plans, which are often referred to as Cadillac plans, is expected to impact a considerable share of the plans provided by healthcare organizations for their own employees, as much as ȇ% by 2020. The implications are significant because the excess-benefits tax requires the employer to payń0% on the value of the portion of the plan that exceeds thresholds set by the Patient Protection and Affordable Care Act. Employers also need to consider that the tax is measured as a direct function of plan cost, and not actuarial plan value, and that a number of factors can drive excise-tax exposure.

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