Obamacare Wishes You a Happy New Year With New Taxes
The Health Insurer Tax is a sales tax on insurance, and it will increase the cost of health care. As a result, America’s Health Insurance Plans has come out against the health insurer tax. “This tax will add a financial burden on families and small businesses at a time when they can least afford it, and it should be repealed,” according to the organization.
America’s Health Insurance Plans says that the total amount for 2014 will be $8 billion. This increases until it reaches $14.3 billion in 2018. After 2018, the tax will be based on premium trends. A Joint Committee on Taxation estimate calculates that over the next 10 years, the tax will exceed $100 billion. The advocacy group supports a two-year delay of the tax. In 2011, an analysis by Oliver Wyman, a consultancy, indicated that this was going to be passed along to consumers.
The report wanted to bring attention to a “one significant provision … that has received relatively little coverage.” The provision in question was the insurer fee. The consulting firm estimated “that the insurer fees will increase premiums in fully insured coverage markets by an average of 1.9% to 2.3% in 2014. The impacts generally increase over time such that we estimate by 2023, the fees will ultimately increase premiums by an average of 2.8% to 3.7%.”