In the swirl surrounding the new Tax Act, there was some good news on the benefits front.
The Cadillac tax, which was given a lot of time to germinate and grow on everyone, was kept in but the deadline for meeting it was pushed back from 2018 to 2020. As rates continue to rise, the specter of this tax, which penalizes plans that have a value exceeding a certain dollar threshold, nags at employers, particularly those in high cost states like California. The tax does not vary based on geographic factors, so once again the left and right coasts get hit. What’s puzzling is that the tax was supposed to help pay for the ACA, so why don’t they just get to it?