On Dec. 20, President Donald Trump signed a nearly $1.4 trillion spending package, which repealed three ACA taxes. One of those taxes was the Cadillac tax, which was a 40 percent excise tax on high-cost employer provided insurance plans.
For the past decade, CFOs were trying to figure out how they would absorb the tax. CFOs attempted to adjust employee healthcare benefits to remain below a level that would have triggered the tax. Others moved to increase employees out-of-pocket contribution to their health benefits to cut coverage costs.
“Most of all, what CFOs want is certainty, and this was always looming over their heads,” James Klein, president of the American Benefits Council, told The Wall Street Journal.
More articles on healthcare finance:
8 latest hospital bankruptcies
TeamHealth’s ER billing scrutinized at Nashville General
Kansas hospital at risk of losing Medicare funding
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.