Congressional budget agreement includes Excise Tax extension


Mercer Media Advisory: Congressional budget agreement includes Excise Tax extension - Mercer consultants available

  • December 18, 2015
  • United States, New York

With today’s Federal budget agreement providing a two year extension to the inception of the ACA’s Excise Tax (aka Cadillac Tax), many employers will be reassessing their Excise Tax-related health benefit strategies and tactics. Please contact Bruce Lee if you would like to discuss these strategies and tactics with a Mercer consultant.

While Mercer views this extension as broadly positive for the employers who sponsor health plans, the extension does not address some fundamental/structural concerns Mercer recently described in a letter to the IRS.

As background and context for your stories, according to a recent Mercer press release, 29% of employers were expected to hit the excise tax threshold in 2018 AND more than one in ten of these plans have an actuarial value of LESS THAN 80% - see images below.