Which ACA fee is associated with the Cadillac Excise Tax?

The Cadillac Excise Tax, established under the Affordable Care Act (ACA), specifically targets high-cost employer-sponsored health plans. This fee is designed to encourage employers to provide health insurance that is more cost-effective and to avoid excessively generous plans that contribute to rising healthcare costs.

The tax applies when the cost of coverage exceeds certain thresholds, thus incentivizing employers to manage plan costs and benefits more prudently. By imposing this fee, the ACA aims to curb the trend of lavish healthcare plans that may not only increase expenses for employers but also potentially contribute to overall inflation in healthcare spending.

The other options do not accurately describe the Cadillac Excise Tax. For instance, the charges for uninsured patients pertain to a different aspect of healthcare costs and do not relate to specific employer-sponsored plans. Similarly, the reference to a federal tax on health savings accounts and penalties for late employer contributions addresses separate regulations and requirements under the ACA and cannot be associated with the Cadillac Excise Tax, which is focused specifically on high-cost plans.