Employers across America breathed a sigh of relief late last year when Congress passed, and the President signed, a bill delaying the effective date of the so-called “Cadillac Tax” – from 2018 until 2020. The Cadillac Tax is a provision of the Affordable Care Act (ACA) designed to help fund the expansion of insurance coverage and encourage employers to make their health plans more efficient. But the tax has proven to be deeply unpopular among employers, unions, and across the political spectrum.
While the delay is welcome by most employers, it has not relieved the sense of uncertainty since the law remains in effect. As a trusted leader in consumer-directed healthcare, HSA Bank provides expert analysis of the Cadillac Tax and explains how it will impact employers.