National Right to Life – Jennifer Popik, JD, Robert Powerll – 7/31/2013s Reed Abelson of the New York Times wrote in an article titled, “High-End Plans Scale Back to Avoid ‘Cadillac Tax,’”
“Companies hoping to avoid the tax are beginning to scale back the more generous health benefits they have traditionally offered and to look harder for ways to bring down the overall cost of care…The percentage of employers revising their plans as a result of the tax has increased to 17 percent this year from 11 percent in 2011, according to a survey of United States companies released this month by the International Foundation of Employee Benefit Plans. Although the tax does not start until 2018, employers say they have to start now to meet the deadline and they are doing whatever they can to bring down the cost of their plans.”
With more employees reducing membership in these generous plans, Steve Wojcik, Washington-based trade group represents employers such as Wal-Mart Stores Inc., American Express, and Target Corporation recently told Bloomberg, “I don’t think there’s any employer that’s going to pay the tax.”
This will mean that these generous plans will begin to become extinct.
Between the Cadillac Plan provision and the IPAB, Americans can expect that generous plans that allow more access to healthcare will begin to disappear. And we are only in the beginning phases.
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