| Health plan costs that may trigger the excise
tax on high-cost plans under the Patient Protection and Affordable Care Act
(ACA) do not just include the basic cost of coverage, noted Tracy Watts,
Washington, D.C.-based U.S. leader for health care reform for Mercer. They
include the cost of on-site clinics, as well as pre-tax contributions made to
health reimbursement accounts (HRAs), flexible spending accounts (FSAs) and health
savings accounts (HSAs). Speaking to attendees of a Mercer webcast, Watts
shared that a recent survey by Mercer found, if employers made no changes to
their plans, considering basic plan costs only, 31% will trigger the excise tax
in 2018, and 51% will trigger it by 2022. “This is before you add other
components,” she said. Most employers do not facilitate after-tax contributions
to HSAs, but they should consider it as a potential strategy to avoid the ACA
excise tax on high-cost health plans.Read more > |
