Companies Tap Brakes on 'Cadillac' Plan Shift Amid Anti-Tax Push

Companies Tap Brakes on 'Cadillac' Plan Shift Amid Anti-Tax Push

(Bloomberg) After years of passing on more and more health-care costs to employees, companies are slowing their adoption of high-deductible plans next year, according to a survey of more than 100 large U.S. employers.

That relief could be temporary. Companies are waiting to see if lawmakers will repeal Obamacare’s “Cadillac tax” on high-cost health coverage, which is a levy on individual health premiums greater than $10,200. A roll-back would keep employers from having to shift workers into plans where they bear more of the up-front costs of their insurance.

“Because there’s been some momentum around trying to repeal the Cadillac tax, some companies are taking a wait-and- see approach,” said Brian Marcotte, president of the National Business Group on Health, which includes companies such as Wal- Mart Stores Inc., PepsiCo Inc. and General Motors Co.

“If it’s going to go into effect, I think you’ll see another rush in 2017” to put workers in high-deductible plans, said Marcotte, whose group conducted the survey.

Opposition to the tax has united Democrats and their union backers with Republicans and large corporations. It’s tough to repeal, though, because the tax is projected to raise $87 billion over the next decade. Read more on Accounting Today.