With many U.S. hospitals looking down the barrel of Cadillac tax payments by 2022, if not sooner, the flexible spending account may soon vanish as a benefits option.
That's what a hospital benefits survey by Cammack Health found when it polled hospitals about the effects of the Patient Protection and Affordable Care Act on their benefits designs.
The study said that, given annual plan value increases of about 6 percent, most of those surveyed said they would trigger the Cadillac tax on "rich" plans by 2022. Because flexible spending accounts add to a plan's value, many said they would likely drop the option.
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Dan Cook
Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.
