"Cadillac Tax" Could Impact 60% or More of Large Employers

May 20, 2010

40% Tax is not deductible

Starting in 2018, it is estimated the 60% of companies could be hit with a 40 % non-deductible tax for not controlling healthcare plan costs. Some businesses have said they are willing to absorb the tax in order to offer better health plans to remain competitive with their benefit offerings.

Health Care reform constitutionality is still hotly debated. Last week the total number of states filing suit increased to 20. There are two central elements on which the suit has been filed: the mandate that virtually everyone obtain insurance of pay a penalty and the expansion of Medicaid. The New York Times published and editorial on May 20th stating: "We believe the reform law has been carefully framed to stay within constitutional bounds." They claim this based on Congress requiring states to cover specific group of people up to certain income levels. It has yet to be seen how the courts will rule.

Other articles of interest in the May 20, 2010 NAHU Newswire include:

• Democratic Lawmakers Seek To Reassure Physicians About Medicare Payment Fix
• Public-Private Partnerships Aims To Help Workers Quit Smoking

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