Workers Unlikely to See Relief From Delay of Health Plan Tax

via Associated Press

WASHINGTON (AP) — Don’t expect to see much relief from rising costs for workplace health coverage under a federal budget deal that postpones a widely feared tax on generous insurance plans, experts say.

The so-called Cadillac tax, the last major piece of President Barack Obama’s health care law, would be delayed two years, until 2020. It was meant to discourage extravagant coverage and help keep costs in check. But opponents including business and labor call it a tax on essentials. Democratic presidential candidate Hillary Clinton advocates its repeal.

Although the tax is still technically on the books, delay would represent a political setback for the White House. Just a few months ago top economic adviser Jason Furman warned that repeal or delay would have “serious negative consequences” for the health care system.

The Cadillac tax is 40 percent of the value of employer-sponsored plans that exceeds certain thresholds: $10,200 for individual coverage and $27,500 for family coverage. In its first year, it would have affected 26 percent of all employers and nearly half of larger companies, according to the nonpartisan Kaiser Family Foundation..

Read the full article here featuring Lockton consultant Ed Fensholt

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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