Thursday, March 26, 2015

Must Read Benefit News for Practitioners and Advisers, March 26, 2015

  • Is There a Future for Employer Sponsored Health Insurance? Short answer, yes. Over the next five years, the effects of the PPACA on employer-sponsored insurance will be small. Any erosion in group coverage is likely to be limited to low-wage workers currently offered insurance in sub-50 employee groups.  That is the most likely place we'll see exchange uptake. [Source: Wharton Public Policy]. 
  • It's Time. Employers Should Consider Cadillac Tax Issues in Their CBAs. Employers are beginning to use a variety of strategies in CBAs to deal with the tax, such as reducing plan benefits and increasing deductibles; adding language to allow the employer to unilaterally reduce benefits to avoid the the Cadillac Tax; and allowing for automatic re-openers in 2017 when we have more regulations on the tax. [Source: Winston Strawn, LLP.]