The ACA's "Cadillac Tax"

posted 3 years ago in Wellness
Post # 3
Member
1951 posts
Buzzing bee
  • Wedding: February 2014

@mtbikelover:  I’m going to withhold my rant on the ACA and just answer your question as best I can. 

From what I understand, the “Cadillac Tax” was created for high-deductible plans that pass on less costs to the employee. According to the geniuses idi… people… who created the ACA, these types of plans encourage overuse of facilities, doctors, and resources. So they are applying this tax to try and collect money. Basically, its a 40% tax on any amount over the government-set “cap” of “acceptable” health care costs. 

They can’t even roll out a secure, functional website, and now, they’re supposed to know what’s best for insurance, employers, and eployees? Yeesh..

Reference: http://www.healthaffairs.org/healthpolicybriefs/brief.php?brief_id=99

Post # 4
Member
10487 posts
Sugar Beekeeper
  • Wedding: January 2011

@BlondeBee:  They are worried people are going to hang out at the doctor’s office for fun?

I don’t pay a dime for going to the doctor and while I like my doctor I wouldn’t be going if it wasn’t to deal with an issue or prevent something from happening.

Post # 6
Member
11668 posts
Sugar Beekeeper
  • Wedding: November 1999

@BlondeBee:  Cadillac health plans actually tend have lower deductibles. High deductible health plans serve to discourage consumers from overuse, not encourage it. 

Post # 8
Member
11668 posts
Sugar Beekeeper
  • Wedding: November 1999

@mtbikelover:  I don’t either!  I can’t tell you why your plan is being effected but for whatever reason the current plan value is putting you over that threshold.  It was my understanding that most HDHPs wouldn’t come near that threshold.  I would encourage you to ask your benefits department for more information though.  There is a big move to HDHPs for a number of reasons, including saving employers money, so you can obviously expect to be moved to a plan with an even higher deductible (which really sucks).  

 

Post # 10
Member
1951 posts
Buzzing bee
  • Wedding: February 2014

@MrsWBS:  Sorry – you’re correct. In my mind, somehow i had them reversed. My employer has a super-high deductible, but they pay 100% of it, which makes it cheap for me. It’s Friday. I need a drink. 

Post # 11
Member
11668 posts
Sugar Beekeeper
  • Wedding: November 1999

@BlondeBee:  lol I hear ya – if only I werent pregnant!! 

Post # 12
Member
7281 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

It’s designed for people like my parents. Their plan has no deductible and a $10 co-pay for a doctors visit. If either of them has a hang nail or a small sniffle, they go to the doctor. It doesn’t cost them much, so why not? The cadillac tax was designed to get at that mentality.

As for the OP, I hate to be a skeptic, but many employers are blaming the ACA for things as a cover for changing plans to less expensive (to the employer) options. They now have a very easy scape goat for employee wrath, and they are using it to their advantage. A friend just had this happen to his. When pressed on it, someone in hr finally admitted that they had no idea whether the old plan was ACA compliant, and the company was switching just to save money while chalking it up to the ACA. There is some shady stuff going on out there. Employee beware.

Leave a comment


Sent weekly. You may unsubscribe at any time.

Find Amazing Vendors