Skip to comments.Consumers Hit With Surprise Tax in Obamacare Premium
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 thats 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 arent 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 customers bill showed that these new taxes added up to an extra $23.14 a month, or $277.68 annually, Kaiser Health News reported. The individuals 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.
That's why they call it affordable.
Surprise. Corporations don’t pay taxes. The end user/consumer does.
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.
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.
This in addition to an additional $1500 deductible we now have.
Thanks, Justice Roberts. Thanks.
Anyone who is surprised by a “hidden tax” in a government program is probably mentally retarded.
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.
Sponsoring FReepers are contributing
$10 Each time a New Monthly Donor signs up!
Get more bang for your FR buck!
Click Here To Sign Up Now!
How utterly Marxist.
Remember Obama pledging that people making under $250,000 would not pay one dime in additional taxes....another lie.
And to top it off, you have a gun to your head forcing you to participate in this POS.
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.
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.
gotta pay for the deadbeats and illegals somehow
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.
I WILL NOT PAY THAT!!
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...