Skip to comments.The Unsung, But Massive Obamacare Sales Tax Increase That Is On the Way
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 ...
That is because that’s the way Obama and his evil conspirators planned it that way. No surprises until after the end of 2012.
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.
Misleading title. WHAT is the massive sales tax that is coming?
Sales taxes are usually stated as a percentage but it seems to not be included anywhere in this article.
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?
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 dont 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.
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....
The people with their heads up their a$$e$ thought it was going to be free!
Buried deep in the bill it says only those who didn’t vote for obama will pay higher taxes.
This is the fault of the Tea Party for fighting it so hard.
Without obamacare everyone would be taxed more and all hospitals would be closed.
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!’
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.
When he said not one thin dime, he was talking to “his people” not to us.
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.
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
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
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.
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...
‘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.
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.
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.
Your employee provided health care benefits are reported on your W-2 this year. You know that they will be taxed as income in the near future. The idea is to get rid of the “Cadillac” plans and have everyone covered by the same third world health care program.
Fight now while we still can? I’d like to know just what we have been trying to do?
If memory serves me correctly this mess was forced down our throats in the first two years of this administration when the lefties had total control over the house, spinate and administration. There was not a thing that could be done. Pelousy and Reed did this by slight of hand and intrigue and just plain deceit.
We are not being listened to, we don’t count anymore. Get a clue, the only next step to fight harder is to forcibly insist on being heard.
See my post 17. Perhaps you recognize yourself...
It looks like you prefer Obama to Romney. You can be happy now.
We could have changed this by getting out to vote, instead of staying home and sulking, and thus giving Obama a second term.
I think you might be delusional if you think the E-pubs would have trashed Odeathcare. That is to much power over the people to give up.
Some of us tried to get out the vote because we realized that perfect is the enemy of good and that we only had two bad choices again and that our task was to pick the best bad choice. Some people understood that exercising their vote for the best bad choice was better than doing nothing which had a certain outcome.
Others did stay at home sulking. Why did they do this? I’ll let you be the one who gets flamed for saying it if you say it correctly.
perhaps it’s tiem that several states band together and succeed (sp?) fro mthe union, and begin their own government run “BY THE PEOPLE FOR THE PEOPLE” and which actually upholds it’s own constitution and puts into place that no congress thereafter shall alter the words (and be sure to hammer out PRECISE and clear wording so that it can NOT be twisted later on Make it ABSOLUTELY CLEAR that the government shall NOT ifnringe on these basic constitutional rights- EVER! and they shall NOT add addendums later on restricting those rights and tenents of the constitution
We escaped from the very same kind of tyranny we are now facign with this socialist leader of ours oncve before, it’s tiem to do so again- Begin our own military, set clear limitations on how much a government can take in taxes, set clear boundaries on how far they can go in enacting new taxes (give soem leeway for unforseen expenses down the road BUT make sure to enact clear instructions and limitations AND make usre that any temporary icnreases needed in certain instances be IMMEDIATELY reduced back to previosu prices of taxes ocne the crisis is taken care of- and be sure to excplain in detail what constituttes a crisis etc-
The left has become mega rich exploiting the loopholes and twisting hte words of the constitution, and exploiting situations, and manufacturing crisis’ whenre none exist- They have driven this country straight to hell in so doing- They are dysfunctional, and NEED to go- we need a new start in this country— and hte people need the power to step in and remove officials who violate their oaths of office after havign hearings conducted BY THE PEOPLE- just like we have juries to determine innocence or guilt- We need systems like htisw to keep our politicians honest apparently because current politicians on BOTH sides have become unafraid they will ever lose their jobs-
they NEED to be made to udnerstand that they work for US, not vice versus- IF they want a pay eraise, they NEED to coem to US and ask USK- not simply vote umoung htemselves to give themselves massive pay raises while DENYING seniors and dissabled peopel their meager cost of livign icnreases which don’t even come close to keepign pace with current icnreases in cost of living
We know health care's going to get worse - and more expensive. Incentives from hell are built into the ObamaCare system - we'll identify them. ObamaCare WILL be the issue that destroys Democrat control. Wait, you'll see.
Dems lied to blacks for decades about how they were going to 'make things better' if only blacks would give them 96% of their vote.
Blacks did - and nothing got better. Dem ideas don't work. High level dems know that - white liberal elites WANT blacks dependent and desperate. It keeps them voting for 'hope' - the fake 'hope' liberals put out to stay in power. They think they're going to do the same with us and health care. They're NOT going to be able to pull it off...
Sadly for dems, the rest of us aren't as gullible as dependent blacks. ObamaCare will be uncovered for the hoax it is...
This was was a story I believe in USA Today a year and a half ago that unfortunately didn’t get much traction in the heat of the campaign. For ATT&T to keep benefits with all the known mandates and fines would mean a 1+ dollar annual expense. To pay the fine and give every employee a $2,000 raise to buy their own on the exchanges, less than 300 million dollars to 500 million dollars. It isn’t necessary to understand the law from A to Z to appreciate that it will be much easier for individuals to pay the fine, or just sandbag somehow through some loophole etc. until they are actually sick.
Sorry, that should read 1+ billion dollar expense...
I don’t have any suggestions, but when the Press and the Democrats finally push too hard and CW2 starts I know I better not see a “Journalist”
Yes. The article sucks in that it doesn't state the amount of sales tax to be collected.
I read an article similar to this the other day but the tax being discussed only applied to those with incomes above 100K or so.
I hope you meant ‘...IF Ike had...’. As to Roberts it is becoming clear the guy is a big crook as to child adoption and Vatican Bank accounts. Reminds me of the old saying about the fruit dropping on the ground close to the tree.
To all veterans who used to get healthcare at absolutely no charge from the VA:
When I signed on the dotted line in 1969 I was told that if I served my hitch and received an honorable discharge I would be entitled to free healthcare for the rest of my life. Then they started means testing it and threw that promise out the window. They broke their promise. How would we go about a class action lawsuit over means testing? This could really throw a monkey wrench into obamacare.