Experts say employers won't rally behind the Cadillac tax, or the idea of eliminating employer coverage altogether, for a host of reasons. Self-preservation is at play for the benefits industry. From a business perspective, companies want to continue to take advantage of the full tax exclusion since untaxed dollars make paying workers a little cheaper, said Loren Adler, an associate director at the Brookings Institution's Center for Health Policy.
And ultimately, employers have realized it would be a political and reputational nightmare in the short term to stop providing health benefits. It would immediately raise the ire of workers who expect jobs to come with a halfway decent health plan.
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