Cadillac Tax

Cadillac Tax Delay Would Save OEBB as Much as $21.3 Million

Repealing the unpopular excise tax on generous health plans leaves a budget hole for the Affordable Care Act, but it’s unclear how many employers would have paid the tax because insurance brokers have devised solutions that avoid higher taxes while retaining benefits for employees. One such end-run uses health reimbursement accounts tied to higher-deductible health plans.

Congress appears poised to delay the so-called Cadillac Tax for two years as a part of a large, year-end tax deal until 2020, a move that could save the Oregon Educators Benefit Board as much as $21.3 million in taxes it would have been expected to pay on its most generous health plans.

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