Americans love a good story. From fairy tales to hair-raisingfilms that leave us cowering in our seats, we enjoy when our heartspound in anticipation. Sometimes, though, we keep ourselves up atnight by creating myths about things that shouldn't be worrisome atall. One example: The Affordable Care Act's 40 percent excise taxon high-cost health care plans, commonly referred to as theCadillac Tax.

Although we are several years away from its implementation,brokers are wondering what these health care changes will mean fortheir business. The Cadillac Tax is confusing and prompts questionsfrom employers and benefits professionals — especially about whento make changes to benefits plans and whether voluntary insuranceis affected.

Let's take some time to distinguish between the myths and factsso when you communicate with your clients about their plans thisyear — and in years to come — you have the facts to ensure you'reproviding clients with accurate information to make effectivebusiness decisions regarding benefit offerings.

Myth: Employers should make benefit changes now to avoidthe Cadillac tax.

Fact: The Cadillac tax has been delayed until 2020.

• As part of the Congressional spending bill signed into law inlate December 2015, the Cadillac Tax is delayed until 2020.

• Considering implementation of the tax is several years away andregulations will evolve, employers can wait before consideringchanges to their policies.

Myth: All voluntary benefits are included in thetax.

Fact: Generally, voluntary insurance products do notcount toward the Cadillac Tax calculation.

• Only two types of voluntary coverage — specified disease andhospital indemnity — are subject to the calculation of the tax, butonly if they're paid for with pretax dollars, such as through acafeteria plan, or with excludable employer contributions.Otherwise, they are not subject to the calculation of the tax.

• Voluntary insurance products are defined as HIPAA-exceptedbenefits.

Myth: Employers should switch their pretax voluntaryinsurance products to after-tax versions.

Fact: Only employers with benefits plans considered“high cost” need to consider after-tax strategies.

• Employers and their workers receive tax advantages for retainingpretax voluntary products.

• Only two types of voluntary coverage — specified disease andhospital indemnity — are included in tax calculations, and onlythen if they're paid with pretax dollars or the employer pays anyportion of the premium. Other voluntary insurance benefits won'ttrigger the Cadillac Tax, regardless of whether they're offeredbefore or after tax.

Myth: Employers or workers will be responsible forpaying the Cadillac Tax when it goes into effect.

Fact: In most cases, the insurance provider will beresponsible for paying the tax.

• Most small businesses are fully insured, meaning the insuranceprovider sets the premium and pays the claims. When that's thecase, the insurer, not the employer, is responsible for paying theCadillac Tax when it goes into effect in 2020.

• If an employer is self-insured, meaning the employer sets thepremiums and pays the claims, or the coverage offered is a healthsavings account (HSA) or an Archer medical savings account (MSA),the employer or the plan administrator will be responsible forpaying the tax.

The bottom line is that myths and rumors have made the CadillacTax seem more confusing than it already is. It isn't even expectedto take effect for another four years, so it shouldn't prompt yourclients to exclude voluntary insurance from their benefits options.After all, the security voluntary coverage provides can help ensureyour clients and their employees sleep well instead of worryingabout medical costs that are continuing to rise.