I thought I'd give y'all an update on one man's experience with the impact of the ACA on employer-sponsored health insurance:
As I've indicated earlier, the purpose of the Cadillac Tax is:
Interestingly, employees are not happy with what's happening to them; but hey, for some, you get what you vote for. Enjoy the bill as it comes due.
- Annual company compliance cost has climbed to $1.5M
- Overall company self-insured claims experience is under budget for the year, but...
- Premiums for the next plan year will be going up 15-40% depending on which co-insurance plan is selected and which dependent configuration is selected (rates are going up because of the upcoming Cadillac Tax - glide path to compliance)
- Because of the Cadillac Tax, employees are being "incentivized" to move from low levels of co-insurance to high levels of co-insurance where the deductible and max out-of-pocket amounts are essentially equivalent to what would be called a "high deductible" health plan
As I've indicated earlier, the purpose of the Cadillac Tax is:
- First to make employer-sponsored plans more like the plans available on the exchanges (lower Value-to-TCO ratio), and
- Ultimately to make employer-sponsored plans uncompetitive in comparison to exchange plans so employers are incentivized to shift employees to an exchange
Interestingly, employees are not happy with what's happening to them; but hey, for some, you get what you vote for. Enjoy the bill as it comes due.
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