Healthcare Costs Making Employers Proactive in 2016

Posted on April 20, 2016

by Admin in Employee Benefits | 0 comments

shutterstock_174875483Companies of all sizes are in the process of making significant changes to their employer-provided healthcare benefits. Concerned about employee retention, the looming Cadillac tax and rising healthcare costs, employers have decided to be proactive now in order to help manage costs later.

Significant Changes to Healthcare

Changes that many businesses have made to their existing plans include:

  • Alterations that help manage costs
  • Changes that increase employee participation
  • Modifications that improve cost sharing strategies
  • Changes that will improve employee health
  • Modifications that will meet new healthcare reform requirements
  • Changes that prepare businesses for the implementation of the Cadillac Tax in 2020

Business will Exceed Excise Tax Threshold by 2018

Half of US businesses are afraid that their current plans leave them vulnerable when the Cadillac Tax is implemented in four years. Approximately 60% of businesses fear that their healthcare costs will exceed the excise tax threshold in two years. Rather than waiting to see if the implementation of the excise tax will be delayed again, companies have decided to start planning for the worst now.

Changes Employers Are Making

Companies of all sizes are preparing for the Cadillac Tax by:

  • Trying to improve the overall health of the US population with wellness initiatives
  • Changing the value of their current plan’s design
  • Making HSA contributions post-tax

In addition, small businesses have also decided to:

  • Move their employee to a public exchange
  • Reducing coverages to spouses or part-time employees
  • Offering minimum essential levels of coverage

If you believe your current employer-provided health care benefits are vulnerable to the Cadillac Tax, you can learn more about your options by clicking here.

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