While Congress continues to debate changes to the Affordable Care Act, employers are faced with making decisions about their 2018 health care plans this summer. Regardless of what Congress may or may not do later, the ACA is still the law of the land for now. That law includes the so-called Cadillac tax on high-cost plans: a 40% excise tax on plans costing $10,200 for single coverage and $27,500 for family coverage. While the tax is not slated to go into effect until 2020, it will drive decisions on health plan designs in 2018, as employers take steps to avoid incurring the levy down the road.
For the past few years, the most popular way of holding down costs has been to move employees into CDHPs, or consumer-directed health plans. These plans pair tax-advantaged health savings accounts with high-deductible health insurance policies. Many employers seed the HSAs with half of the deductible…say, $1,000 of a $2,000 deductible…to encourage employees to sign up.
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