Health care reform
Employers’ challenges under health care reform are just beginning. For many, costs will increase as they insure more people and invest in systems to meet new legal requirements.
As a response, employers will likely increase cost-sharing with employees. In the next three to five years:1
Paying a greater share of their insurance costs may leave employees more financially vulnerable — in an economy that has already done damage to workers’ income and savings:
That’s why financial protection benefits are more valuable than ever. Group and voluntary benefits like disability, life, hospitalization, accident and critical illness insurance can help protect workers and their families against loss of income and new financial responsibilities.
Best of all, you can offer these valuable benefits through several funding options — employer-paid, shared or employee-paid — providing additional employee protection with little to no effect on your company’s bottom line.
Unum benefits are all HIPAA-excepted,* which means that they don’t count in the “Cadillac Tax” calculation. Beginning in 2018, insurers of health plans (including self-insured employers) with premiums that exceed government limits will be subject to a 40% excise tax. They will likely pass some of this expense on to their customers.
With Unum benefits, you can enrich your plans without increasing your chances of paying the Cadillac Tax.
*HIPAA refers to the Health Insurance Portability and Accountability Act. For the purposes of health care reform, certain kinds of coverage are designated as “excepted benefits.”