If the trends spotted in this rather limited pool of respondents holds up over time, wellness programs may benefit from the excise tax, while voluntary benefits may take a hit. Here are some of the actions contemplated next year by companies where the excise tax impact has been evaluated:

33 percent are reducing the richness of their plan designs through higher out-of-pocket costs, including 10 percent that say they will eliminate high-cost, rich design options;
31 percent are increasing the use of wellness incentives in their plans;
14 percent are evaluating private exchange options for pre- and post-65 retirees, while 7 percent are considering private exchanges for active employees;
14 percent are significantly reducing spousal eligibility or subsidies through mandates or surcharges;
5 percent are implementing narrow/high performance provider networks.

Aon Hewitt also solicited projected plan design changes 10 years out. Here are some of the strategies employers shared in the survey:

37 percent may restructure coverage tiers to align with tax threshold ratios;
31 percent may limit FSA, HSA and/or HRA contributions counted against thresholds;
26 percent may limit buy-up options for employees;
16 percent may move to a private health exchange.

Instant Insights /

Cadillac tax begins to influence plan design

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