Beginning in 2018, the Patient Protection and Affordable Care Act imposes an excise tax on high-cost health plans.
In addition to being a way to raise revenue for the government, the reason for this provision is to reduce the demand for high-cost – or so-called Cadillac – plans, where the individual has little out-of-pocket cost. The point? To encourage employers, providers, and consumers to control health costs.
So the tax, in the simplest terms, penalizes companies that offer high-end health care plans to their employees.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
