Have You Considered Adopting a High-Deductible Health Plan…

Lyndsey Barnett

…if not, you are in the minority. High-deductible health plans coupled with health savings accounts (HSAs) have gained increasing popularity over recent years. I read an interesting article that predicts that HSAs could quadruple their growth over the next six years. The article predicts that 50 million Americans will be covered by high-deductible health plans by 2019.

High-deductible health plans are frequently introduced by employers when the increase in the cost of their traditional health plan becomes more than they or their employees can comfortably handle. In future years, high-deductible health plans will also be used by employers to reduce or eliminate their Cadillac Tax liability. The Cadillac Tax is a new excise tax that is set to go into effect in 2018. The 40% excise tax is required to be paid by all plans that have a premium cost in excess of $10,200 for single coverage and $27,500 for all other tiers of coverage. We will cover much more on the Cadillac Tax as we get closer to 2018.