This national scale quantitative report analyzes the impact on employer-sponsored plans of one of the Patient Protection and Affordable Care Act’s most controversial provisions, the Cadillac tax. This study is based on analyzing the claims experience of about 22 million lives or 20% of all employees and their dependents enrolled in a large employer health plan. It shows by year how many employers and how many employees and their dependents will be affected by the Cadillac tax. The study also summarizes the change in benefit plan design richness (actuarial value) needed to avoid the excise tax and presents an alternative methodology that could help plans avoid the tax if their costs are high for reasons other than plan design.

This report was commissioned by phRMA.