Unless health care costs can be mitigated, more than 60 percent of large employers' health plans will be affected by a federal excise tax that will go into effect in 2018, according to new analysis from benefit consultant Towers Watson.
The so-called "Cadillac plan" excise tax included in the new health care reform law imposes a 40 percent tax on employer health plan costs exceeding $10,200 for single coverage or $27,500 for family coverage in 2018.
According to Towers Watson data, the current cost of medical coverage for active single and family plans is $5,184 and $14,988, respectively. It's estimated if health care inflation projections stay their course, many employer-plan costs will exceed the tax cap.
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