Companies Jockey to Avoid 2018 Tax on Health Plans

Recently the Commonwealth Fund http://www.commonwealthfund.org/ reported: “ Many companies are changing their health benefits to try to avoid a tax slated to hit in 2018 on more generous insurance coverage, a survey found.
…The National Business Group on Health released results from a survey of 136 companies, most of which have more than 10,000 employees.
The survey found that almost a third, 32 percent of those surveyed, plan to offer high-deductible, or consumer driven, health plans. Only 22 percent have done so this year.
The companies polled expected to keep their cost increases to about 5 percent for 2015 by increasing the portion of costs paid directly by consumers, such as using high-deductible plans. That’s less than the 6.5 percent expected increase that the companies would expect if they made no such changes.
Companies are already looking at steps to avoid a 40 percent excise tax that starts in 2018. The so-called “Cadillac tax” was included in the health law (PL 111-148, PL 111-152) to raise revenue for its coverage expansion and is to be imposed in cases where the value of medical benefits crosses certain limits, in most cases $10,200 for individual coverage and $27,500 for family coverage.
To read the full Commonwealth Fund article “Companies Jockey to Avoid 2018 Tax on Health Plans” by Kerry Young, highlight and click on open hyperlink http://www.commonwealthfund.org/publications/newsletters/washington-health-policy-in-review/2014/aug/aug-18-2014/companies-jockey-to-avoid-2018-tax-on-health-plans?omnicid=WHPR544093&mid=jonathanmetsch@optonline.net
Doctor, Did You Wash Your Hands? ™ provides information to consumers on understanding, managing and navigating health care options.
Jonathan M. Metsch, Dr.P.H., is Clinical Professor, Preventive Medicine, Icahn School of Medicine at Mount Sinai; and Adjunct Professor, Baruch College ( C.U.N.Y.), Rutgers School of Public Health, and Rutgers School of Public Affairs and Administration
This blog shares general information about understanding and navigating the health care system. For specific medical advice about your own problems, issues and options talk to your personal physician.

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