Press Release: HSA Bank Shares Insights on the Proposed Cadillac Tax, Effective in 2020
SHEBOYGAN, Wis., April 5, 2016 — HSA Bank, a division of Webster Bank, N.A., released a new brief entitled "Now is the Time to Plan for the Cadillac Tax", written by Kevin Robertson, senior vice president at HSA Bank. The Cadillac Tax is a provision of the Patient Protection Affordable Care Act (ACA) designed to help fund the expansion of insurance coverage and encourage employers to make their health plans more efficient. It was initially set to go into effect in 2018, and has been delayed to 2020, a welcome delay by most employers.
In the brief, the Cadillac Tax is defined and reasons for the delay are discussed (disproportionate impact on workers where higher wages were traditionally traded for richer health benefits, the tax will likely impact nearly all plans over time, and variations in the geographic effects of the tax). Implications of the delay (allowing lawmakers more time to address concerns may only be putting off the inevitable) as well as things employers should watch for in the coming months are also pointed out. Charts are included to show how the Cadillac Tax rises as health plan costs rise.
"The Cadillac Tax will loom large for employers until more concrete reform is enacted, most likely sometime between the presidential election this year and 2020, the year in which the tax is currently set to take effect," said Robertson. "Meanwhile, CDH/HSA plans continue to provide the best bet for those employers planning for the worst effects of the tax."
About HSA Bank
At HSA Bank, we’re working toward a world where everyone is empowered to save for a healthy future. By providing the right tools and resources, we make it simple for our 3 million members nationwide to maximize their savings for healthcare and long-term goals. As a leader in health accounts for over two decades, we continue to innovate. Our offerings in the healthcare savings space drive down healthcare costs, increase access, and assist with decision-making for consumers, health plans, partners, and advisors. As of September 30, 2020, HSA Bank had $9.4 billion in total footings comprising $7.0 billion in deposit balances and $2.4 billion in assets under administration through linked investment accounts.