Cadillac Tax Serves as Incentive to Reduce Health Care Benefit Offerings

Several years ago, I was tasked with reviewing our health care benefit plan and determining how the looming “Cadillac Tax” would impact our organization and employees. After review, I concluded our health plan was determined to be “high value” and would be subject to the 40 percent excise tax when it goes into effect. As a result, my organization restructured health benefits offering and began implementing a High Deductible Health Plan with an HSA. 

My organization recently surveyed our employees regarding our current health plan and have learned that it’s not effective and our employees are not satisfied with the plan. Some employees say they don’t go to the doctor due to the deductible payments that they’ll be on the hook for. Although my organization contributes funds to employees’ HSA accounts we are learning it’s still not preferred. 

Now we are looking for any and all options to provide our employees affordable health care by reviewing our premiums and deductibles. We may need to also add different plan options to be able to meet the needs of our employees and their families. 

The impending Cadillac Tax definitely prompted us to alter benefit offerings.. yet here we are a few years later realizing what we thought would be a great option is not working as we hoped or planned. 

Tiffany L. Bloyer, MS,MBA, SHRM-CP, PHR

Director of Human Resources

Franklin County Government