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The Unsung, But Massive Obamacare Sales Tax Increase That Is On the Way
Forbes ^ | Feb 16, 2013 | Lindsay Boyd

Posted on 02/17/2013 7:56:08 AM PST by Innovative

Today, America's Health Insurance Plans (AHIP) President Karen Ignagni issued a press release in support of bipartisan legislation (H.R. 1370, S.1880) co-sponsored by Rep. Charles Boustany (R-LA) and Jim Matheson (D-UT) to repeal the Affordable Care Act's (ACA) health insurance tax.

While much of the dialogue on healthcare reform centers on the federal mandate of health coverage for all Americans - which many conservatives call the largest tax increase in U.S history - less attention is being given to the massive sales tax increase on the purchase of health insurance also implicit within the legislation that will dramatically escalate costs for employers and consumers.

In 2014, Obamacare will take effect, with many of the changes set to roll out over the next six months. The U.S Supreme Court narrowly upheld the legislation in a 5-4 ruling in June of last year, with Chief Justice John Roberts controversially justifying his affirmative decision by claiming that the federal mandate is a form of a federal tax, which the government is within its rights to enact.

Indeed, there are a number of new taxes that the ACA will bring - twenty one to be exact - but the sales tax on the purchase of health insurance is by far the largest.

(Excerpt) Read more at forbes.com ...


TOPICS: Editorial; Government; Politics/Elections
KEYWORDS: healthcare; healthinsurance; healthsinsurance; obama; obamacare; salestax; taxes
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We are slowly finding out what's in it, AFTER Obama got a second term...
1 posted on 02/17/2013 7:56:16 AM PST by Innovative
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To: Innovative

That is because that’s the way Obama and his evil conspirators planned it that way. No surprises until after the end of 2012.


2 posted on 02/17/2013 8:03:02 AM PST by Gaffer
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To: Innovative

That was the plan all along.

Not that those who elected this POS wouldn’t have elected him anyway.

They are all enthralled by this Muslim.


3 posted on 02/17/2013 8:03:02 AM PST by Venturer
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To: Innovative

Misleading title. WHAT is the massive sales tax that is coming?


4 posted on 02/17/2013 8:09:47 AM PST by whitedog57
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To: Innovative

Sales taxes are usually stated as a percentage but it seems to not be included anywhere in this article.


5 posted on 02/17/2013 8:11:08 AM PST by CA_soon_gone
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To: Venturer

The poor vote Democrat because they get free stuff. The rich vote Democrat because they get the middle class to pay for the poors free stuff.

The ideologues on the left represent the poor. The establishment represents the rich.

Who represents us? All I know is everyone who has tried to represent us has been pilloried in the press and politically destroyed. That has to stop.

So, any suggestions?


6 posted on 02/17/2013 8:14:55 AM PST by EQAndyBuzz (Got a problem? Nothing a drone strike can't fix.)
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To: Innovative

I didn’t even know about this tax. Over at Instapundit, Glenn Reynolds posted this:
“Meanwhile, my former colleague Colleen Medill, an ERISA expert, writes:

I don’t know if you will see this in your volume of email, but you might.

I am deeply into studying the impact of Obamacare on employers, and I have been communicating with highly sophisticated ERISA lawyers who are advising employers, from Fortune 50 companies to small firms under 50 employees, on whether to keep or drop or modify their employer group health plans.

It has become very clear to everyone involved who is analytical and not ideological that the rational strategy, for both large and small firms, is to cease providing health care insurance to employees.

No company wants to admit that they are considering eliminating health insurance as an option, or be the first one to drop their health insurance plan, but once a competitor does so, the preference cascade will begin. The clear sentiment is “We will not be the first one to drop our health insurance plan, but we would be a close second.”

The coming preference cascade for employer group health plans is what the Democrats fear the most, because Obamacare was sold to the masses as “if you like your health insurance plan, you can keep it.”

The people who really know the law, and who have been following the avalanche of regulations, have already figured this out. It will take a while for this specialized knowledge to seep downward, because right now only $800+ an hour ERISA attorneys and the most sophisticated HR people understand how Obamacare really works.

Hopey-changey!”


7 posted on 02/17/2013 8:17:14 AM PST by Rusty0604
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To: Innovative

No surprise here. My health care premium went up 127% in 2011 and 44% in 2012. My co-pay increased 70%. Gas prices have gone up 100% since 2009. My paycheck has gone down $187 per week since 2012......I’ve been working since I was 13 and have been employed at a big Aerospace firm for 31 yrs and will likely be laid off in the next 6 months. Many co-workers are just giving up at the age of 55.....So I guess Obama’s plan is working out just the way he advertised....


8 posted on 02/17/2013 8:17:23 AM PST by TMD (Behind enemy lines.....)
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To: Innovative

The people with their heads up their a$$e$ thought it was going to be free!


9 posted on 02/17/2013 8:17:47 AM PST by I want the USA back
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To: Innovative

Buried deep in the bill it says only those who didn’t vote for obama will pay higher taxes.

or

This is the fault of the Tea Party for fighting it so hard.

or

Without obamacare everyone would be taxed more and all hospitals would be closed.

or

All of the above.

I disagree with any republican co-sponsoring anything. Let the dems own it. Plus, with obama why would anything need to be repealed. He enforces whatever he wants to enforce and all the businesses and state governments and politicians say ‘Yes, Sir!’


10 posted on 02/17/2013 8:25:51 AM PST by Terry Mross (How long before America is gone?)
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To: CA_soon_gone
Sales taxes are usually stated as a percentage but it seems to not be included anywhere in this article

Sounds like the sales tax is going to be determined based on meeting a "revenue" requirement. In other words the tax will be whatever is needed to fund the programs once they figure out what the programs cost. Which of course is never. Or just shut up and pay.

11 posted on 02/17/2013 8:29:45 AM PST by Fzob (In matters of style, swim with the current; in matters of principle, stand like a rock. Jefferson)
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To: I want the USA back

When he said not one thin dime, he was talking to “his people” not to us.


12 posted on 02/17/2013 8:34:07 AM PST by oldbrowser (They are marxists, don't call them democrats)
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To: whitedog57
$100B over 10 years. Starts at $8B/year, increasing later.

By this administration's standards, it doesn't sound "massive". But as the private health insurance industry shrinks, it will become more onerous, because it's not a percentage, but a total amount.

13 posted on 02/17/2013 8:35:00 AM PST by AZLiberty (No tag today.)
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To: whitedog57; CA_soon_gone; All

The article has a link which has information on the cost/magnitude of this tax:

AHIP Supports Bipartisan Legislation to Repeal the ACA’s Health Insurance Tax

http://www.ahip.org/News/Press-Room/2013/AHIP-Supports-Bipartisan-Legislation-to-Repeal-the-ACA%E2%80%99s-Health-Insurance-Tax.aspx

America’s Health Insurance Plans’ (AHIP) President and CEO Karen Ignagni released the following statement in support of bipartisan legislation co-sponsored by Representatives Charles Boustany (R-LA) and Jim Matheson (D-UT) to repeal the Affordable Care Act’s (ACA) health insurance tax:

“The health care reform law includes a new $100 billion sales tax on health insurance that will drive up costs for consumers and employers. Unless this tax is repealed, next year an average family will pay over $300 in higher premiums, seniors enrolled in Medicare Advantage will face $220 in reduced benefits and higher out-of-pocket costs, and state Medicaid managed care plans will incur an additional $80 in costs for each person covered. At a time when many families are struggling due to the weak economy, this tax will mean less money to pay the bills or save for retirement or a child’s education.

“The health insurance 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.”

Facts about the Health Insurance Tax:

Starting next year the ACA imposes a new $100 billion tax on health insurance. The tax will start at $8 billion in 2014, increasing to $14.3 billion in 2018, and will continue to increase each year.

The health insurance tax is larger than the device tax and the prescription drug tax combined.

The health insurance tax will increase costs for individuals and families purchasing coverage on their own, small businesses, seniors and people with disabilities enrolled in a Medicare Advantage plan, and state Medicaid managed care plans.

The health insurance tax is far greater than the minimum penalty for those who choose not to buy health insurance - further incentivizing young, healthy people to forgo purchasing insurance until they need medical care.

For more information about the health insurance tax, check out our infographic and web video and visit our website at

http://www.ahip.org/HIT.


14 posted on 02/17/2013 8:37:26 AM PST by Innovative ("Winning isn't everything, it's the only thing." -- Vince Lombardi)
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To: Innovative

So, instead of starting legislation to end Commie care they are going to fix it? And who said that the E-pubs are for the people? They are never going to stop this. When people start to understand that both party’s are going to keep this “Control” over the people because of what the power of your life means to them.


15 posted on 02/17/2013 8:37:40 AM PST by luv2ndamend (k)
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To: Rusty0604
It has become very clear to everyone involved who is analytical and not ideological that the rational strategy, for both large and small firms, is to cease providing health care insurance to employees.

My guess? Companies will come up with 'Concierge Health Services' for their elite management teams - and their families. The best doctors will move into this type of private practice - fewer patients, better hours, and malpractice insurance paid by the employer.

And the middle class? They'll be moved into an expensive form of medicaid - with marginal medical care. Few doctors will want to treat the masses for government level reinbursements - so meidical standards will be lowered. Your future 'doctor' might be a minority (with a job preference) two years of college and a person who resents the hell out of having to deal with you. If you object - or don't like how you're being treated - you'll go to the back of the line. Maybe an additional 6 months of living in pain before being treated.

But, like with modern day 'disability' - some special ones will get the pass - and others will wait. The chosen ones will have an 'in' with those people who decide - - and sadly - being a conservative - you and your family will NOT be part of the chosen.

We must fight this now... while we still can...

16 posted on 02/17/2013 8:38:36 AM PST by GOPJ (To be free is to own one’s risk - Jonathan Levy)
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To: GOPJ

‘We must fight this now... while we still can...”

Too late... we didn’t do it, when we could have, by turnig out to vote in November, making sure that Obama didn’t get reelected and Obamacare would have been repealed by now.

But people preferred to sulk and stay home and now we are all suffering. It’s really the “cut-off-your-nose-to-spite-your-face” voters who gave us Obama’s second term and they never learn.


17 posted on 02/17/2013 8:45:06 AM PST by Innovative ("Winning isn't everything, it's the only thing." -- Vince Lombardi)
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To: Innovative

The Reps should not help the Dem fix what is wrong with Obamacare. They have already helped kill some onerous paperwork requirements and eliminate the long term care portion. Trying to make it work will ensure that Obamacare will never be repealed.


18 posted on 02/17/2013 8:46:16 AM PST by kabar
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To: GOPJ

http://publiushuldah.wordpress.com/2012/11/13/now-how-do-we-get-rid-of-obamacare-nullify-it-2/


19 posted on 02/17/2013 8:46:50 AM PST by luv2ndamend (k)
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To: Innovative

I’m not one to like throwing salt into old wounds, but I have to say this. It now is clearly a tax, so I guess Romney has no reason to oppose it now.


20 posted on 02/17/2013 8:52:59 AM PST by Idaho_Cowboy (Ride for the Brand. Joshua 24:15)
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