From the September 2015 issue of HealthCare Business News magazine
On the horizon, the Cadillac Tax, a 40 percent tax on employers that provide high-cost health benefits to their employees, is scheduled to take effect in 2018. According to the “Cadillac Tax Fact Sheet” created by Cigna, the concept is to reduce excessive health care usage and costs by encouraging employers to offer plans that are cost-effective and engage employees in sharing in the cost of care.
In response, a growing number of companies are adopting high-deductible health plans to encourage employees to be more cost-conscious when choosing an expensive and potentially unnecessary treatment or procedure — and make better choices in general. The plan is typically tied to some form of personal health care spending account and an employer contribution that can be used toward the deductible, wrote Bruce Japsen in “Half of Employers Pushing High Deductible Plans onto Workers,” published by Forbes in November.
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High-performance networks have garnered considerable attention in the past few years and will likely gain more interest going forward. High-performance networks are composed of carefully selected health care providers and health professional organizations recruited to serve a defined patient population. These networks are designed to raise the level of integrated care while also making health care more affordable.
About the author: Joseph Berardo Jr. is CEO of MagnaCare, an administrator of self-insured health plans for employers in New York and New Jersey.Back to HCB News