The number of employers who could be subject to the Affordable Care Act’s excise tax on high-cost health plans could be as high as one in four employers (26%) by 2018 when the tax goes into effect, unless changes are made to their existing health plans, according to new projections from the Kaiser Family Foundation. The Foundation’s estimates predict an alarming 40% of employers could be subject to the tax, dubbed the ‘Cadillac tax,’ by 2028, underscoring a need to make plan adjustments sooner rather than later.

The analysis estimates that the share of employers potentially affected by the tax could grow to 30% in 2023 and 42% in 2028 if their plans remain unchanged and health benefit costs increase at expected rates.

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