The ACA Cadillac tax: A primer for employers

The Patient Protection and Affordable Care Act (ACA) excise tax on high-cost insurance plans, known as the “Cadillac tax,” is a narrowly targeted source of funding that the Congressional Budget Office (CBO) has projected to be a significant source of revenue. The calculations involved in projecting the future burden of the Cadillac tax are complex and will become a necessary part of human resources benefit planning, union negotiations, and other postemployment benefit (OPEB) valuations. Milliman consultants Rob Pipich and Chris Ruff provide some perspective in this article.