If you answered yes to this question, you could be the hero to pull her/him out of incoming traffic.
We came across an interesting article in The Wall Street Journal today: “CFOs Seek to Avoid Bite of Health Law’s ‘Cadillac Tax'”. In case you’re not familiar, the Cadillac tax is 40% a year on the amount by which a company’s sponsored plan premiums are above levels stated in the Affordable Care Act ($10,200 for an individual and $27,500 for a family) starting in 2018. Its purpose is to help fund insurance for people covered by the ACA who didn’t have insurance prior to the law. The tax is expected to generate a whopping $5 billion in 2018, and it’s projected to grow to $34 billion by 2024.
To avoid getting run over by the tax, many companies are offering lower premium, high deductible plans as replacement of, or in addition to, their high cost plans as well as health savings accounts.
We’ve seen companies lower their liability substantially by migrating employees over to these types of plans.
Take Adobe for instance. With help from ALEX, Adobe moved 62% of its workforce to its health savings account and reduced its tax liability by $4.7 million. Yes, you read that right: $4.7 million. Read the full Adobe case study here.
Numbers like that should get your CFO’s attention…and you’ll be the hero.