Is it possible that the Cadillac Tax will be a major health spending cost ‘deflator’?
Most employers with 50 – 99 employees have become accustomed to ‘composite rating’. This means, there is generally an EE Only, EE+Spouse, EE+Child(ren), EE+Family rate, independent of employee or dependent ages. Be prepared that, very soon, this will no longer be the case and your rates will become more complex.
Employers of this size will need to gather dependent birthdate information in addition to ‘normal’ employee census information. Without dependent data, it will not be possible to provide accurate employer and employee contribution information.
Going forward, for employers with fewer than 100 employees, the rate structure will be as follows: There will be a rate for the employee based on the employee’s age. There will be a rate for the spouse based on the spouse’s age. There will be a rate for each dependent under age 21, up to a maximum of 3 dependent’s under age 21. There will be a rate for each dependent age 20 to 26.
Bestefits has an online benefit system and other electronic census tools to make gathering this information easier for our employer clients.
Related posts
