Employers Educate Employees As Cadillac Tax Approaches

November 20, 2015

One of the more controversial provisions of the Affordable Care Act (ACA), the excise tax on high-value health plans, goes into effect in 2018, and many employers are already making changes to the health plans they offer to avoid it. Among the changes are implementing narrow networks, transitioning to high-deductible health plans, and incentivizing participation in wellness programs that improve health and could reduce the incidence of chronic illness down the line.

With the open enrollment period for the 2016 plan year well underway, Sandy Ageloff, West Division leader of Towers Watson’s health and group benefits practice, underscored the importance of employers informing their employees of current and planned changes and what they mean.

In an article by Shelby Livingston of Business Insurance, Ageloff counseled employers to be sure that “employees are paying attention and understand the magnitude of change that might be happening in their employer’s benefit plan this year.”

To read the complete article in Business Insurance, click here.

2 Responses to “Employers Educate Employees As Cadillac Tax Approaches”

  1. J. Shanon said

    What about retired seniors?

    • extendhealth said

      The Cadillac tax applies to plans for pre-65 retirees, but does not apply to Medicare plans so it would not affect retired seniors over the age of 65.

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