Blog

To view blog posts prior to July 2010, click here.

The Memphis Business Group on Health (MBGH) is pleased to make this forum, including all web pages and web sites accessed from this page, available to Web Site users and others. However, the MBGH does not render legal or consultation services, and legal counsel must be consulted to determine any material’s applicability to any specific situation. MBGH cannot warrant or control the quality, accuracy, or validity of the information posted here. Comments posted on this blog are the sole responsibility of their writers. Use of such information is at the risk of the accessing user and the accessing user assumes all liabilities that may result from such use.


Projected Tax Revenues from "Cadillac Tax" Drop

From the National Business Coalition on Health: According to a new Congressional Budget Office report, revenues expected to be generated by the ACA's excise tax on high-cost employer-sponsored plans (the "Cadillac Tax") have dropped from $137 billion to $80 billion. 

Largely because of this drop-off in projected tax revenues, the estimated cost of implementing the law through 2023 rose by $40 billion to $1.36 trillion, the budget office said. 

The law imposes the “Cadillac Tax" starting in 2018. Sixty-one percent of employers with 500 workers or more said in a 2011 survey that they expected to trigger the tax unless they took steps, according to Mercer Inc.  

CBO analysts said in a May 14 blog post that the projection changed because of “new data on the health insurance premiums paid by employers. As a result, we now expect fewer employment-based plans to be subject to the excise tax.” Other potential reasons for the decrease include employers pressing hospitals and health systems for better rates, adding wellness programs, and raising deductibles and other cost-sharing on workers. A slowdown in U.S. medical costs overall since the recession that began in 2008 probably also contributed to the CBO’s forecast. 

Posted by Cristie Travis at 7:06 AM

Comments

No Comments yet!

Leave A Comment

Please answer the simple math question below to submit the form.
1 + 2 =

Say Hello

Please feel free to drop us a line via the button below. We try to respond to every email we receive.

Stay Connected

Join the MBGH community and keep up to date with issues concerning Memphis healthcare.

Facebook Twitter LinkedIn Feed