CFO Studio Magazine - CFO Innovation Award Winners

30 WWW.CFOSTUDIO.COM 2nd QUARTER 2015 they don’t really understand it. An alternative is the organization can absorb some of the increase and the rest has got to come from either reduced benefits or the employees.” A few of the attendees presented a different perspective on the concept of the exchange. “The best manager of your health care costs is you,” said Ed Sitar, CFO of Cancer Genetics, a provider of diagnostic products and services. “That drives people to really shop their health care. [Over time,] people will move to a plan that allows them to manage the out-of-pocket better.” Andrew Wood, CFO of J. Fletcher Creamer & Son, Inc., contractors, said, ““I believe the concept of private exchanges are a way companies will go to fix their costs in the future by giving their employees a defined dollar amount to individually purchase the plan that is best suited to their personal situation from a menu of competitive options on the private exchange.” There is confusion about limitations on employers’ reimbursing employees for health care costs. Anthony Panico, partner at WithumSmith+Brown, explained, “It’s $100 per day per employee if you reimburse them for health insurance premiums.” And penalties pertain if you exceed that. The Excise Tax Effective in 2018, the ACA’s excise tax, the “Cadillac tax,” will apply to employers who provide health care coverage to employees in excess of $10,200 for individuals, and $27,500 for family policies. The tax is 40 percent on high-cost health benefits. James Emmerson, CFO of Huntington Learning Corporation, the private tutoring and test prep company, shared a concern that in order for companies to avoid paying the excise tax, their employees will end up having higher out-of-pocket costs. Fanny Tan, CFO of Diagnostica Stago, a medical diagnostic company and partner of medical biology laboratories, questioned how the Cadillac tax will work. Anthony Panico, partner at WithumSmith+Brown, explained that “The insurance company is responsible to file and remit the fee on your behalf. Many believe the tax will be passed down in the form CFO STUDIO EXECUTIVE DINNER SERIES L. to R.: Robert Glenning, Kevin Lenahan, Baldeep Dua