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1. Avoid the excise tax.
Many employers are already making changes to their medical plans in anticipation of the excise tax in 2018. Also known as the Cadillac tax, it’s a 40% tax on the value of medical benefits over a set threshold. Organizations likely to hit the threshold have time to plan for a “soft landing” by phasing in changes to reset benefit cost at a lower level now, Mercer says. The most common strategies are adding in low-cost consumer-directed health plans and eliminating the highest-cost plan offered today.


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