Is it possible that the Cadillac Tax will be a major health spending cost ‘deflator’?
1) they are coupled with high deductible plans to reduce fixed medical insurance premiums
2) create a tax savings account vehicle for qualified expenses that apply to the deductible
3) gain interest like a savings account
4) unused money is not lost each year
5) it is another tax deferred account for individuals who find that they are maxing out their retirement savings and know they will have medical expenses
6) employers gain by encouraging employees to contribute to the account and subsequently reduce the employer’s payroll tax liability
7) employers can contribute and ‘seed’ the account to encourage employees to use it and learn more about its benefits
“Employers likely underestimate the influence they can have on their employees’ health choices to improve wellness and contain costs through their HSA plan.” read more on page 38
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