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Thursday, May 28 2015

Full Issue

Mid-Sized Businesses Seek Relief From Health Law Provision They Say Will Increase Costs

The Wall Street Journal reports that employer groups and insurers are pushing to keep these employers exempt from the health law's requirements -- scheduled to take effect Jan. 1, 2016 -- regarding what health plans must cover and how they are priced. The Journal also offers new takes on the so-called Cadillac tax.

Employer groups and insurers are pushing to keep businesses with 51 to 100 workers exempt from a provision of the federal health law that they say could significantly increase their costs. For these midsize employers, the Affordable Care Act鈥檚 requirements for what health plans must cover鈥攁nd how they are priced鈥攁re set to take effect on Jan. 1, 2016. (Radnofsky and Janofsky, 5/27)

The U.S. West Coast port labor contract ratified by dockworkers will require shipping companies and terminal operators to cover the tax on high-cost health plans beginning in 2018 under the Affordable Care Act, widely called the 鈥淐adillac tax.鈥 Health care benefits were an important part of the negotiations that culminated in an agreement in February and last week鈥檚 vote by the cargo handlers in favor a five-year contract that included wage increases, pension upgrades and substantial health care coverage. (Phillps, 5/27)

The 鈥淐adillac Tax鈥 isn鈥檛 the only reason executives are looking to shed health-care costs; low-margin businesses don鈥檛 have much choice but to arrest the increases and trim fat wherever they can. As CFO Journal reported Tuesday, finance executives are turning their attention to the controversial provision of the 2010 Affordable Care Act, which is scheduled to take effect in 2018 and penalizes companies whose benefits are deemed overly generous. But even modest grocers whose benefits won鈥檛 trigger a levy can鈥檛 afford to ignore the burgeoning costs of coverage. (Murphy, 5/27)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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