Tuesday, December 17, 2013

The Cadillac Tax and Its Impending Arrival

Should religious institutes be concerned already with the health insurance "Cadillac tax" that is set to take effect in 2018? The topic has been the subject of a few articles in recent months. This article from The Morning Call in Allentown, Pennsylvania, summarizes the dilemma that some employers see before them -- years before the Cadillac tax actually kicks in.

The sum of $10,200 is not a lot when you consider that the tax kicks in four years down the road, and insurance premiums will presumably and (arguably) necessarily rise between now and then. It is easy to conceive of that sum catching many employers off-guard if they do not do some analysis now. Religious institutes would be wise to take at look at the cost of the insurance they currently provide their employees (AND their members) and do some number crunching to see if the Cadillac tax could be arriving in your places of employment in four or five years...

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