Big Employers Could End Up Paying "Cadillac" Tax

As Congress contemplates taxing insurers for gold-plated health benefits to pay for a health overhaul, it might catch another group in its net: employers who "self-insure"—or pay for their workers' health bills on their own... The Senate Finance Committee is considering a proposal by Sen. John Kerry, D-Mass., that would impose an excise tax on insurance companies' so-called "Cadillac plans." ...But it's also likely to affect the more than half of covered workers who are insured directly by their employers, rather than by private insurers. In those cases, businesses that "self-insure" take on the risk of providing insurance to employees and pay for health services directly...

Kaiser: Big Employers Could End Up Paying "Cadillac" Tax