In December, 2019, President Trump signed spending legislation that will repeal of an excise tax on high-cost health plans, known as the Cadillac Tax. The Cadillac Tax, which was scheduled to take effect in 2022, would have imposed a 40 percent excise tax on employer health plans, deemed by many to be too generous. Are you curious what this could mean for you and your employees?
At Further, we have been working hard to bring awareness to this tax and advocate for the repeal on behalf of our partners and clients. With the Cadillac Tax repeal, effective December 21, 2019, employees will continue to have access to their health spending and savings accounts that they rely on to pay for care today, and employers can continue to offer great health benefits without the worry of potential taxes.
At Further, our mission is to provide resources and tools to our members that empower them to spend every day wisely. There are many online sources that provide more background on this tax, including information from the National Association of Health Underwriters and the Tax Policy Center.