Public or Private, Health Benefits Face Strategic Pruning

via Wall Street Journal

Finance chiefs at companies ranging from Cisco Systems Inc. toWestmoreland Coal Co. are scrutinizing employee health benefits as they face the Affordable Care Act’s looming “Cadillac tax” on generous health plans.

They aren’t the only ones. Across the country, cities and states are also scrambling to figure out how many millions the tax will cost them.

The ferment underscores how all employers stand to be pinched if they can’t reduce employee health-care costs below government-set thresholds.

Starting in 2018, both public and private employers will have to pay a tax of 40% on the amount by which the cost of their health-care plans exceed $10,200 for individuals and $27,500 for families. Those sums include premiums paid by both employers and employees.

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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