Skip to comments.Obamacare Tax to Raise Premiums in 2018, Cost $270 Billion Over Next Decade
Posted on 10/15/2017 10:55:24 AM PDT by Kaslin
Tax could potentially affect 156,000 Americans who could see premiums rise even further
An Obamacare tax that will be imposed in 2018 will raise premiums even further and is estimated to cost $270 billion over the next decade, according to a report commissioned by UnitedHealth Group.
The report was commissioned to examine how a tax imposed by Obamacare would impact premiums.
Under Obamacare, health insurers that offer coverage are required to pay a fee on health insurance premiums they earn, which is also considered a tax by the IRS.
Congress imposed a moratorium on collecting these taxes in 2017, but that moratorium will end the beginning of 2018. According to the report, $13.9 billion in insurer taxes was not collected in 2017, which saved consumers about 3 percent on premiums.
"However, under current law the moratorium will lapse in 2018 and the tax on health insurance will be reinstated for 2018 at a higher annual level ($14.3 billion), resulting in higher fully-insured premiums for the 2018 plan year and all future years," the report explained.
The report notes that if the corporate income tax rate remains at 35 percent, for every dollar collected in taxes, $1.54 will be added to premiums. This could impact premiums by as much as $22 billion in 2018over the next decade it is projected to cost $270 billion.
"In summary, we estimate that the tax on health insurance will increase premiums by 2.7% in 2018, and between 2.6% and 2.8% in subsequent years when the amounts collected in taxes is mandated to increase at the same level as the premium trend," the report states.
As a result of the tax, the report estimates an individual in the non-group market could see their premiums increase by $165 and a family in the small group market could see premiums rise by $523.
Over the next decade, the premium increases could total $2,376 for an individual in the non-group market and $6,464 for a family in the small group market. A total of 156 million Americans could be impacted by this tax and see their premiums increase.
The report notes that the rise in cost of health insurance leads to negative outcomes such as individuals deciding to delay getting coveragepotentially leading to a decline in the number of insuredraising the tax burden on small employers, and creating a more unstable risk pool, which could lead to higher premiums.
Incremental implementation, incrrmental hikes in fees, funded with taxes collected for several years ahead of implementayion, and then the Kenyan usurper claims ‘Who me?’
It was a fraudulent ponzi scheme.
It sure was
Everything they do is so sustainable. /s
Private companies collecting “taxes”. Yay Obamacare.
Demand Congress pay for this...from their own pockets. Since they love it so much, they won’t mind.
As soon as McCain is out of the picture maybe we can get rid of this monstrosity”
That would be two monstrosities.
This was built into bammycare before Trump even thought of the presidency, but Trump will be blamed for it.
Gee, sounds like some body (congress) better do something.
What was the Congressional Budget Offices estimate when they scored the cost for Obamacare? No doubt, they missed it by a mile.Funny how they miss their estimates on the low side when they score Democrat bills, bout score the cost of GOP tax cuts or Obamacare reforms through the roof. The CBO has no credibility.
I know. Rich isn't it.
So what's to stop a vote from extending this moratorium? Other than McCain and Collins?
Congress imposed a moratorium on collecting these taxes in 2017, but that moratorium will end the beginning of 2018.
So what’s to stop a vote from extending this moratorium? Other than McCain and Collins?
IIRC, isn’t it the way that taxes & cut are codified?
Raises in taxes are automatic and never need to voted upon again.
Cuts are *always* X amount of time before they need be extended or allowed to expire.
IOW, all $$ belongs to govt
Most people think the opposite of Progress is Regress. Not so! The opposite of Progress is CONGRESS!
Come to think of it, I wonder what year state governments began forcing private retailers to collect sales taxes.
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