Cadillac tax

From the beginning I have predicted that Obamacare would reduce cost. This is because of rationing which only a government sponsored program can do and higher deductibles which cause people to use health care less frequently and when they do use it they shop around. The average deductible for an Obamacare family plan is $12,000 per year except for those who get subsidized insurance which is 85% of those who have signed up. Here is the latest move in this direction and will include the plans now offered by most big companies. The so-called “Cadillac tax,” now four years away, will affect health plans that spend more than $10,200 per worker. “The excise tax, when it hits in 2018, will affect both employers and employees,"said Brian Marcotte, president of the National Business Group on Health. Employees will get incentives to reduce costs through such arrangements as wellness programs, including losing weight or stopping smoking. Meanwhile, employers are shifting workers into plans with higher deductibles, just as ObamaCare does in the health care exchanges, and using health savings accounts to help defray the costs.