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5
2016
ANNUAL EMPLOYEE MEETINGS
A
fter mounting pressure from bipartisan lawmakers,
employers, and insurers, President Obama signed,
on December 18, 2015, legislation that delayed the
start of the Affordable Care Act “Cadillac Tax” provision
from 2018 to 2020.
Plenco Vice President of Human Resources John G.
Brotz explained at the April 7 Annual Employee Meetings
that the two-year delay was good for both the Company
and all of our employees. From the beginning, the
provisions of the Cadillac Tax had “caused Plenco to plan,
design and promptly modify how we offered health care
coverage to you and your families over the past five years in
order to avoid paying a punitive 40 percent excise tax on
any portion of each person’s health plan value that the act
considered too generous,” John said.
With the delay, Plenco has another two years to assess
whether the unusually high health care claims in 2014 and
2015 will continue or begin to return to the more normal
levels of previous years. If not, John said, new options,
including higher deductibles and co-insurance limits and/or
the elimination of our “Standard” plan, may be required in
order to reduce or eliminate the effects of the Cadillac Tax
in anticipation of its possible 2020 effective date.
On a related note, John answered an Employee/
Supervisor meeting question as to whether Plenco would
consider reinstating the $1,000 family and $500 single
contributions to Health Savings Accounts (HSAs) as a
result of the Cadillac Tax delay.
John made the point that the timing of the decision
needed to be considered. “Had the delay been known at the
time the company made the decision to offer the $10,000
Critical Illness policy to employees, we might have
continued the HSA contribution for a few more years.”
He reported that employee enrollment in the high
deductible plan had increased each of the last three years.
“I would like to believe that our younger families recognize
the savings in premiums and being able to put tax-free
money away in an HSA for future use to be the main
incentive for choosing the High Deductible Health Plan
(HDHP), and the Critical Illness policy only being a
secondary feature.”
However, “since the [employer cost of the] Critical
Illness policy is not considered like the HSA contribution
when accounting for determination of the Cadillac
surcharge, and the fact that it is now being offered, means
that we will continue to use it to promote the HDHP,” John
said.
He also reminded employees that Plenco still carries the
responsibility for more than 80 percent of the medical costs
that pass through the company’s plans.
Delay of ACA ‘Cadillac Tax’ Gives
Plenco Health Plans Breathing Room
John Brotz Says No Changes Will Be Necessary Now;
Company will Continue Critical Illness Policy
John G. Brotz announced at the annual
meetings that it is company policy that any
employee who operates a lift truck must use
the seat belt provided for employee safety.
“Lift trucks come equipped with safety belts
for a reason, just as automobiles do,” he said.
“Statistics have shown that the use of seat belts
while operating a lift truck does save lives.”
“We have not yet had a fatality or extremely
serious lift truck injury here at Plenco,” he said,
“but elsewhere they have. We should take
advantage of every opportunity we can to
insist on safety, and more importantly, make it
a part of our everyday behavior.”
Lift Truck Safety
Use of Lift Truck Seat Belts Now
Required of All Operators