Benefits Think Cadillac tax: A huge car wreck for employers?

Commentary: By now, you’ve probably heard of the Cadillac tax, the piece of the Affordable Care Act that levies a 40% excise tax on the cost of health insurance coverage above a certain threshold.

That’s a big tax, but most employers don’t seem too concerned with it. There are likely a couple reasons for this. One, it goes into effect in 2018, which still seems a long way off. And, two, since it’s called the Cadillac tax, most employers don’t seem to think it could possibly apply to their health insurance plan. They know they don’t have “Cadillac benefits” so they aren’t focused on it.