The updates are designed to assess the potential cost impact for health benefit plan sponsors and develop a clear strategy for managing their current plan to best address the Play or Pay provision and the Cadillac Plan Excise Tax.
The tool allows clients to perform “what-if” scenarios using current plan offerings to determine the average annual increase that can be absorbed and stay $1 short of the Cadillac Plan Excise Tax effective in 2018. It also helps employers understand an organizations’ exposure to employee eligibility related to the state exchanges.
“Given the recent Supreme Court decision related to Health Care Reform, we know clients need to refocus on their action plan,” said Jim Blaney, CEO, Willis Human Capital Practice. “We redesigned the financial modeling capabilities of our original Health Care Reform Impact Analysis Calculator to provide our clients real time, actionable data based on plan design criteria, and to indicate how certain decisions would affect Pay or Play or Cadillac Plan Excise tax liabilities,” he said.
The Willis HCR Impact Analysis Calculator provides an extensive listing of each Health Care Reform regulation past, present and future. Each regulation is clearly summarized with the effective date, description and administrative impact.
The Cadillac Plan calculator allows organizations to forecast penalties associated with current plan offerings and premium structures. An additional “what if” module has been added to enable clients to determine how to maximize plan offerings while avoiding the excise tax.
The Play or Pay calculator determines monthly exposure to “play or pay” penalties, effective 2014, based on hours worked and number of full-time employees.