Impact of GOP Health Proposal on Employers | Mercer US

GOP Proposal Equally Objectionable to Employers

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GOP Proposal Equally Objectionable to Employers
Calendar01 July 2016

This article in Business Insurance hits the highlights of the GOP proposal in terms of its impact on employers. There are features that are attractive to employers –in particular, the elimination of both the employer and individual mandates and substantially higher limits on contributions to health savings account. But it also includes a controversial proposal to convert the Cadillac Tax, to another method of taxing high-cost plans. Health plan cost above a threshold (that was not specified in the report) would be considering taxable income for plan members. From an employer perspective, the revised approach has the same flaws as the Cadillac tax under the ACA. Geography, age of the population, number of dependents are all components that can have a very positive or very negative impact on cost. In the end, politics – and the outcome of the Presidential election – will be the biggest determinant of what happens.

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