Fact: The Cadillac tax has been delayed until 2020.

• As part of the Congressional spending bill signed into law in late December 2015, the Cadillac Tax is delayed until 2020.

• Considering implementation of the tax is several years away and regulations will evolve, employers can wait before considering changes to their policies.

Myth: All voluntary benefits are included in the tax.

Fact: Generally, voluntary insurance products do not count toward the Cadillac Tax calculation.

• Only two types of voluntary coverage — specified disease and hospital indemnity — are subject to the calculation of the tax, but only if they're paid for with pretax dollars, such as through a cafeteria plan, or with excludable employer contributions. Otherwise, they are not subject to the calculation of the tax.

• Voluntary insurance products are defined as HIPAA-excepted benefits.

Myth: Employers should switch their pretax voluntary insurance products to after-tax versions.

Fact: Only employers with benefits plans considered “high cost” need to consider after-tax strategies.

• Employers and their workers receive tax advantages for retaining pretax voluntary products.

• Only two types of voluntary coverage — specified disease and hospital indemnity — are included in tax calculations, and only then if they're paid with pretax dollars or the employer pays any portion of the premium. Other voluntary insurance benefits won't trigger the Cadillac Tax, regardless of whether they're offered before or after tax.

Myth: Employers or workers will be responsible for paying the Cadillac Tax when it goes into effect.

Fact: In most cases, the insurance provider will be responsible for paying the tax.

• Most small businesses are fully insured, meaning the insurance provider sets the premium and pays the claims. When that's the case, the insurer, not the employer, is responsible for paying the Cadillac Tax when it goes into effect in 2020.

• If an employer is self-insured, meaning the employer sets the premiums and pays the claims, or the coverage offered is a health savings account (HSA) or an Archer medical savings account (MSA), the employer or the plan administrator will be responsible for paying the tax.

The bottom line is that myths and rumors have made the Cadillac Tax seem more confusing than it already is. It isn't even expected to take effect for another four years, so it shouldn't prompt your clients to exclude voluntary insurance from their benefits options. After all, the security voluntary coverage provides can help ensure your clients and their employees sleep well instead of worrying about medical costs that are continuing to rise.