Beginning in 2020, the Affordable Care Act (ACA) will levy a 40 percent excise tax on health plans that are deemed to be overly generous. This tax, also known as the “Cadillac tax,” will affect health plans that cost more than $10,200 for an individual or $27,500 for a family. The Cadillac Tax is designed to encourage companies to choose lower-cost employee health plans and to raise revenue to fund other ACA provisions.
Though the Affordable Care Act was signed into existence by President Obama six years ago, the continued rollout of associated programs and requirements still has employers nervous with regards fulfilling obligations and avoiding penalties. Compliance is a major concern for employee benefits managers, and the tension continues to mount as more limits and restrictions are placed on employers regarding what coverage may be offered..
Employee Benefit News discusses employers’ main concerns in a recent article about ACA and the future of the cadillac text.
How To Get Prepared
This recent article discusses the top ACA priority changes coming in 2017. For more information about implementing an effective employee benefits program and ensuring ACA compliance, call your Taylor Insurance Services expert today. Don’t have a Taylor Agent? We’d love to get you connected to the Power of T. Call us today at (229) 247-6411. Our knowledgeable experts are ready to help you get the most out of your employee benefits program and develop strategies that both recruit and retain top-notch talent.
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