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Consumers Hit With Surprise Tax in Obamacare Premium
Fiscal Times ^ | 2/26/2014 | Brianna Ehley

Posted on 02/26/2014 6:38:55 PM PST by markomalley

Obamacare isn't just impacting the uninsured. Americans who already had health coverage before the Affordable Care Act will likely pay more this year and even more in the years to come.

Insurance companies, faced with new Obamacare fees and taxes meant to help fund the law, are planning to pass along the added costs to consumers. This includes the multibillion-dollar annual “Insurance Providers Fee,” which took effect in January and is assessed to each company based on its share of annual premiums collected by the entire industry. This new fee is expected to raise $8 billion this year and more than $100 billion over the next decade.

Though the fee is crucial to financing Obamacare, industry experts and administration officials have confirmed that it will be passed on to consumers in the form of higher premiums or out-of-pocket costs – an issue that’s been a concern to both advocates and adversaries of the law since it took effect in 2010.

Until now, however, the financial impact of the fee has been unclear. The conservative American Action Forum crunched the numbers and found that individuals with employer-based plans are likely to pay an extra $77 this year as a result of the tax. Families with employer-based coverage would have to pay an extra $266. The study said these amounts will increase to $139 for individuals and $476 for families by 2018 and will continue to increase after that as well.

A separate analysis in 2011 by the New York-based consulting firm Oliver Wyman found that the fee could push up individual premiums by about 2 percent.

Though most insurers aren’t telling consumers that the cost of their plans have increased because of new Obamacare taxes, one company, Blue Cross Blue Shield of Alabama, included a line item labeled, “Affordable Care Act Fees and Taxes,” to identify the new costs. One customer’s bill showed that these new taxes added up to an extra $23.14 a month, or $277.68 annually, Kaiser Health News reported. The individual’s monthly premiums rose from $322.26 to $345.40.

Still, Obamacare proponents say the new taxes are crucial to funding the law. They argue that insurers are subjected to new taxes but also stand to bring in billions in new revenue from the millions of Americans acquiring health coverage for the first time.

Proponents also point out that the taxes help fund the subsidies provided to consumers under the law, which help make plans more affordable. Federal subsidies are only available to use, however, toward plans purchased on the exchanges.

There are 21 new taxes under the ACA, including a 2.3 percent medical device sales tax estimated to raise $29 billion over 10 years, and a fee for brand-name drugs that will bring in another $34 billion. The Joint Committee on Taxation estimated that all new ACA taxes and fees will cost taxpayers more than $675 billion over the next decade.


TOPICS: Business/Economy; Government
KEYWORDS: bobamacare; consumers; democratcare; healthcare; insurance; powerandcontrol; surprise; tax; theft

1 posted on 02/26/2014 6:38:55 PM PST by markomalley
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To: markomalley
Insurance companies, faced with new Obamacare fees and taxes meant to help fund the law, are planning to pass along the added costs to consumers.

That's why they call it affordable.

2 posted on 02/26/2014 6:43:50 PM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: markomalley

Surprise. Corporations don’t pay taxes. The end user/consumer does.


3 posted on 02/26/2014 6:44:22 PM PST by Jim Robinson (Resistance to tyrants is obedience to God!!)
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To: markomalley

nothing more than ‘legalized’ extortion.

The whole damn gubamint ought to be brought up on RICO and dereliction of duty charges.

Things like this don’t happen unless crooks and thieves are allowed their way.


4 posted on 02/26/2014 6:46:14 PM PST by NormsRevenge (Semper Fi - Revolution is a'brewin!!!)
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To: markomalley

No. Seriously. There really is such a thing as a free lunch. Just send me $100 and I’ll tell you how to get a free lunch.


5 posted on 02/26/2014 6:48:34 PM PST by blueunicorn6 ("A crack shot and a good dancer")
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To: NormsRevenge

This in addition to an additional $1500 deductible we now have.

Thanks, Justice Roberts. Thanks.


6 posted on 02/26/2014 6:49:45 PM PST by Cowgirl of Justice
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To: markomalley

Anyone who is surprised by a “hidden tax” in a government program is probably mentally retarded.


7 posted on 02/26/2014 6:53:36 PM PST by 2ndDivisionVet (I will raise $2M for Sarah Palin's next run, what will you do?)
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To: markomalley

I got a notice in December that effective Feb 1 my insurance would be about $35 higher because of this. I am up to a $477 premium for catastrophic coverage, $5,000 deductible, no doctor visits, no prescriptions, no nothing, unless I end up admitted to a hospital. I don’t know if I can cancel and go on the dole, but this has become nowhere near affordable for me.


8 posted on 02/26/2014 6:54:29 PM PST by PistolPaknMama
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9 posted on 02/26/2014 6:55:01 PM PST by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: markomalley
...and is assessed to each company based on its share of annual premiums collected by the entire industry...

How utterly Marxist.

10 posted on 02/26/2014 6:57:48 PM PST by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: markomalley

Remember Obama pledging that people making under $250,000 would not pay one dime in additional taxes....another lie.


11 posted on 02/26/2014 6:58:56 PM PST by The Great RJ
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To: markomalley

And to top it off, you have a gun to your head forcing you to participate in this POS.


12 posted on 02/26/2014 6:59:56 PM PST by headstamp 2 (What would Scooby do?)
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To: markomalley
Proponents also point out that the taxes help fund the subsidies provided to consumers under the law, which help make plans more affordable.

Huh? Only in Washington-speak does spending MORE on something make it more affordable.

I guess the tax payers aren't the same as consumers, or something. What a clear admission of wealth redistribution.

13 posted on 02/26/2014 7:02:11 PM PST by RightField (one of the obstreperous citizens insisting on incorrect thinking - C. Krauthamer)
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To: Cowgirl of Justice

http://www.youtube.com/watch?v=1slibJ52yoc


14 posted on 02/26/2014 7:07:15 PM PST by headstamp 2 (What would Scooby do?)
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To: RightField

I said it before but it is worth repeating, by now our grandfathers would have been shooting.

Had a recurrent lab test today. Last year, same test co pay $30; today $70. I wish a pox on all democrates and RINOs.


15 posted on 02/26/2014 7:08:39 PM PST by Mouton (The insurrection laws perpetuate what we have for a government now.)
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To: markomalley

gotta pay for the deadbeats and illegals somehow


16 posted on 02/26/2014 7:09:28 PM PST by GeronL (Vote for Conservatives not for Republicans!)
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To: markomalley
Unexpected
17 posted on 02/26/2014 7:09:53 PM PST by tomkat (3%+1)
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To: markomalley
I've had insurance coverage for years, through my employer.

My policy changed this year, because of Obamacare.

It's now more expensive and provides lesser coverage.

I knew it was going to happen.

There's no surprise here to anyone who was paying attention and didn't believe the lies.

18 posted on 02/26/2014 7:27:07 PM PST by Washi (Stop Obama's War On Jobs)
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To: markomalley
and America takes another one in the........

19 posted on 02/26/2014 7:34:36 PM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: Chode

I WILL NOT PAY THAT!!


20 posted on 02/26/2014 7:41:12 PM PST by SADMILLIE
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To: SADMILLIE
unfortunately, the only way NOT to pay it, is not to have insurance...
21 posted on 02/26/2014 7:45:35 PM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: markomalley

Obamacare can be likened to a vicious case of Herpes...

Just when you think you have it under control and MAYBE it won’t get worse, it flares up and causes more pain & agony...


22 posted on 02/26/2014 7:45:55 PM PST by bfh333 (William Wallace was right! ~~~ FRRRREEEEEEEEEEEDOM ~~~)
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