U.S. Companies Scaling Back ‘Cadillac’ Health Plans
A growing number of U.S. companies that offer so-called Cadillac health insurance plans are taking steps to scale back the generous coverage plans before an excise tax under the Affordable Care Act takes effect in 2018. Under the ACA, insurance plans or businesses that offer health plans with annual premiums of more than $10,200 for individuals or $27,500 for families would pay a 40% excise tax on the portion of the premiums that exceeds those thresholds. Policy analysts say the trend of scaling back generous coverage plans already is helping to reduce overall health costs by forcing businesses to examine their benefits plans more closely.
- "High-End Health Plans Scale Back To Avoid 'Cadillac Plans'" (Abelson, New York Times, 5/27).