WASHINGTON (Sputnik) — Health Savings Accounts (HAS) must be exempt from the “Cadillac Tax” in the Affordable Care Act to prevent huge financial impact on US employers and employees living in higher-cost US states, American Bankers Association HSA Council Executive Director Kevin McKechnie told Sputnik.
"While Congress debates the future of health care reform, it is imperative that legislation exempting HSA contributions be passed," McKechnie said on Monday. "Employers and employees living in higher-cost states and with particularly generous plans will feel the effects of the Cadillac Tax before it takes effect in 2018."
For family benefits valued at $30,000, the tax would affect the $2,500 sum over the given limit.
McKechnie said even those US employers and employees with HAS-qualified plans will experience the impact of the Cadillac Tax, especially as it pertains to benefit changes and reductions in contributions to HSAs.
The American Bankers Association is a trade association that represents financial institutions like community banks and regional and money center banks, with the average Association member having around $250 million in assets.