Under current Affordable Care Act (ACA) requirements, self-funded health care plans may be hit with a 40% excise tax if the costs of their plans rise above government-regulated thresholds. The so-called "Cadillac Tax" goes into effect in 2018, and many union plans may be affected. The IRS issued its first set of guidance on determination of this new tax in late February, with more change to come. Now is the time to determine what the tax means for your union's health and welfare fund. How will your fund address the potential increase in costs? If your plan is currently grandfathered and exempt from certain ACA requirements, is it feasible to remain that way for the long-term?
For more information, visit www.ullico.com/healthcare-reform-resource.