In late December 2015, Congress passed new legislation that delayed the start of the Cadillac tax until 2020. The Cadillac tax, which was set to start in 2018, imposes an excise tax of 40% on health plans whose value is more than $10,200 for individual coverage and $27,500 for a family (the tax only applies to the amounts that exceed the threshold).

If the Cadillac tax is implemented in 2020, companies will likely continue to shift more of the costs onto employees -- in the form of higher deductibles and co-pays and also reconsider their wellness programs, on-site health clinics and tax-free contributions to health savings accounts to lessen their health plan value to avoid the tax.