Cadillac Tax Relief

Posted on Posted in Alerts, Health and Welfare Compliance

Cadillac Tax Relief

Relph Benefit Advisors is a member of the IRS’s Employee Council on Flexible Compensation (ECFC) and Lisa Allen, our VP of Regulatory Affairs sits on their compliance committee which provides constructive observations regarding current or proposed IRS policies, programs, and procedures, and proposes improvements:

Recently ECFC added their endorsement to a letter to Congress, along with 36 other prominent trade groups requesting that Congress grant relief from the impending 40 percent “Cadillac” tax on employer-sponsored health coverage before the end of this year.

The letter stresses the importance of quick action by pointing out the following:

  • Many employers plan for and determine benefits up to two years in advance. 
  • These employers are already restructuring their health care benefit offerings to avoid the future tax. 
  • If the Cadillac tax is not repealed, many employers will be forced to make additional benefit modifications. 
  • Employees will be hurt by higher copays and deductibles and lower Health Savings Account contributions.

 

I encourage you to take the time to send this letter to your congressional representatives. The Cadillac Tax was a flawed provision from the beginning and will only create further hardship for your employees in the form of higher out of pocket costs as employers will understandably avoid paying these taxes in whatever ways are needed.

Bob Relph, President
Relph Benefit Advisors

You can download the letter here and follow the steps below to send to your members of Congress.

  1. Visit the House.gov website 
  2. Enter your zip code
  3. Click on your representative’s name to be directed to their contact information/website

If you should have any questions, please do not hesitate to reach out to your Senior Benefit Consultant or myself directly at 1-800-836-0026 x230 or 585-415-0448 or email at lallen@relphbenefitadvisors.com.

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