One of the final Affordable Care Act items to be implemented is the Excise Tax on High Cost Employer-Provided Medical Plans. Unless lawmakers take action, the excise tax, or Cadillac tax -- a 40 percent nondeductible tax -- will hit high-cost health plans offered by employers beginning in 2018. The Cadillac tax may ultimately reduce or impact Health Savings Accounts (HSAs) and Healthcare Flexible Spending Accounts (FSAs) because participants' contributions to these accounts are considered when calculating the tax. HSAs and FSAs help make healthcare costs more affordable, manageable, and predictable for families. These accounts also enable employees to budget and save their own money for family health expenses.
If Congress does not repeal the Cadillac tax, or as a first step, exempt contributions to HSAs and FSAs from the Cadillac tax, healthcare costs will be more expensive and less predictable. Middle class families will be especially hard hit without access to these money-saving accounts.
Recently, the Employers Council on Flexible Compensation (ECFC) launched the "My Money, My Health" campaign (see ECFC's press release). The campaign aims to reach Members of Congress and ask them to stand up for middle class employees and protect their health savings and flexible spending accounts, which may be in jeopardy because of a looming tax known as the "Cadillac tax."
It is critical that Members of Congress hear from the people who will be hurt if Congress does not exempt HSAs and FSAs from the Cadillac tax. We are asking you to make your voice heard through the "My Money, My Health" campaign. Go to www.mymoneymyhealth.org to participate in the campaign -- you'll find sample letters you can write to your representatives in Congress, ways to get involved and share your story, and how to stay engaged and follow the campaign on Twitter (@mymoneymyhealth) and Facebook ("My Money, My Health").
Please feel free to share this with your employees and through your social network. It's imperative for you to help spread the word about this important effort.
Important Action Items:
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