Employers are taking the Cadillac Tax seriously.

The controversial provision of the Patient Protection and Affordable Care Act will not be implemented until 2018, but it already appears to be serving its purpose: Companies are trying extra hard to reduce health spending.

A new report from Mercer, a global human resources consulting firm, finds that the average total health benefit cost per employee rose by 3.8 percent in 2015, the third consecutive year in which costs rose by less than 4 percent.

Employers, desperate to avoid the 40 percent excise tax that will be levied on every dollar they spend above certain thresholds on employee health benefits ($10,200 for an individual; $27,500 for a family), are taking measures to slim down their health plans.

The projected increase in cost for 2016 is larger--4.3 percent.

However, if employers weren’t also planning on making big changes to their benefits, they would see an average increase of 6.3 percent. Small employers experienced a larger increase (5.9 percent) compared to large employers (2.9 percent).

Among the 2,486 employers surveyed for the report, the cost of the average employee health benefits package already exceeded the threshold by $1,143.

The survey further finds that 23 percent of large employers are at risk of hitting the threshold for the Cadillac Tax in 2018 if they don’t make any changes to their plans.

That’s down from 33 percent figure it projected last year, evidence that companies are taking measures to pare down costs.

The percentage of companies projected to be hit with the tax rises to 45 percent in 2022.

However, since the tax is indexed to inflation, it’s not clear whether the number of companies hitting the threshold that is in effect at that point could be higher or lower.

“Employers are moving on several fronts to hold down health cost growth,” said Julio A. Portalatin, CEO of Mercer. “In the best scenarios, they’re addressing workforce health, restructuring provider reimbursement to reward value, and putting the consumer front and center by providing more options and more support. In other cases, the pressure to avoid the excise tax is leading to some cost-shifting, plain and simple.”

What are the popular forms of cost-shiftings?

1. High deductible and consumer-driven health plans

High deductible and CDHPs are an obvious candidate. Mercer reports that among the nation’s largest employers (those with more than 20,000 employees), 77 percent offer a CDHP plan, which 30 percent of their employees opt for. Overall, 25 percent of U.S. workers are enrolled in CDHP plans.

2. Telemedicine

Another cost-savings strategy that is sure to grow in coming years is telemedicine.

Although the lack of clear payment methods has kept some doctors from engaging with patients through new mediums, such as video consultations, large employers are putting their leverage on behalf of the burgeoning market.

The survey showed that telehealth offerings from large companies jumped from 18 percent to 30 percent in the past year.

3. Health care shopping tools

Finally, the increasing availability of health care shopping tools allows consumers to pick plans that more directly fit their needs and offers employers an opportunity to reduce costs.

A quarter of large employers contracted with vendors to provide transparency tools to help employees select health plans in 2015, up from 15 percent last year.

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