Stop the H.I.T.
- Thread starter Yagents
- Start date
And there goes their MLR margin . . .
The reinsurance plan is a risk sharing where each carrier "contributes" a portion of their Obamacare premiums to a pool managed by the government. These monies will be paid out to the carriers . . . at some point . . . to offset losses on the block.
"Bigger" carriers, those that write the lions share of Obamacare plans, will contribute more but will also get more back (in theory).
From a carrier perspective, they lose the use of those funds (which are really a tax) and must wait to get them back under an apportionment formula. When they get the reinsurance money, and how much it will help (if any at all) is the concern.
- 8,448
Excerpt from 3/8/2013 News Article:
"A newly unveiled component of President Obama's healthcare law forcing insurers to pay annual fees is sowing angst in state capitols, where officials view the provision as a $15 billion tax that could disrupt Medicaid programs and other services."
States balk at $15B Obama healthcare 'tax' - The Hill's RegWatch
Is this one of the taxes that we've discussed already in this thread, or is the IRS now joining with HHS to find language in the ACA legislation to "create" taxes/fees out of thin air?
How does a tax on private insurers disrupt state Medicaid programs? It's the focus on Medicaid in this story that gives reason to believe that this particular proposed tax/fee did not exist before this week. I'm eagerly looking forward to the upcoming public demonstrations against ObamaCare. Watching the negative news stories, and angry "man on the street" interviews escalate this Fall will be FUN!
-ac
"A newly unveiled component of President Obama's healthcare law forcing insurers to pay annual fees is sowing angst in state capitols, where officials view the provision as a $15 billion tax that could disrupt Medicaid programs and other services."
States balk at $15B Obama healthcare 'tax' - The Hill's RegWatch
Is this one of the taxes that we've discussed already in this thread, or is the IRS now joining with HHS to find language in the ACA legislation to "create" taxes/fees out of thin air?
How does a tax on private insurers disrupt state Medicaid programs? It's the focus on Medicaid in this story that gives reason to believe that this particular proposed tax/fee did not exist before this week. I'm eagerly looking forward to the upcoming public demonstrations against ObamaCare. Watching the negative news stories, and angry "man on the street" interviews escalate this Fall will be FUN!
-ac
- 4,096
Try explaining these taxes to business owners. Out of 3 meetings last week I had all 3 owners that state they would drop the group health plan next year.
2 were conservative republicans and one was social democrat.
Group were all about the same size around 18 lives. All paying around $100k a year for a group health plan.
Start adding these taxes up and it becomes a real number.The reinsurance fee is serious.
2 were conservative republicans and one was social democrat.
Group were all about the same size around 18 lives. All paying around $100k a year for a group health plan.
Start adding these taxes up and it becomes a real number.The reinsurance fee is serious.
Perhaps a re-read will offer clarification, but a quick review seems to indicate the tax will supplant the current state premium tax on insurance policies.
States fund Medicaid in any number of ways, including the premium tax. For most states the premium tax is their primary source of income.
I thought this was an add-on tax to existing premiums.
States fund Medicaid in any number of ways, including the premium tax. For most states the premium tax is their primary source of income.
I thought this was an add-on tax to existing premiums.
deathbyaca14
Expert
- 63
At least the Obama administration is consistant in saying the costs are going down.
Re-reading this article, and a couple of others, I think it's not going to replace the state premium tax, but rather it will tax those Medicaid programs that use insurers to provide the managed care models. Here's a quote from the article mentioned in the posts above, and it is similar to what I've read in other articles.
HOWEVER.... I wouldn't put it past this administration to suggest that states should lose their premium tax anyway, arguing that the Feds have taken over the functions for which those premium taxes are charged! The Feds have already instituted a fee to states that waived administration of their own exchanges - a "fee/tax" that wasn't in the law in the first place.
But in states that participate in Medicaid managed care plans, the fee would be painful. One study commissioned by the Medicaid Health Plans of America found that states would be on the hook for $15 billion over the next ten years.
Read more: States balk at $15B Obama healthcare 'tax' - The Hill's RegWatch
Read more: States balk at $15B Obama healthcare 'tax' - The Hill's RegWatch
HOWEVER.... I wouldn't put it past this administration to suggest that states should lose their premium tax anyway, arguing that the Feds have taken over the functions for which those premium taxes are charged! The Feds have already instituted a fee to states that waived administration of their own exchanges - a "fee/tax" that wasn't in the law in the first place.
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- 8,448
Wednesday, June 19, 2013
With tax season now behind us, accountants are planning for 2014 and crunching the Health Insurance Tax (H.I.T.) projections. They're not liking what they're seeing and are advising business owners accordingly.
Story: HIT stands in way of small business job growth - The Hill's Congress Blog
"Since 88 percent of small businesses and the self-employed purchase their health insurance through the fully-insured market, this health insurance tax, or HIT, will be borne overwhelmingly by the small business community in the form of higher premiums. In fact, a study by Douglas Holtz-Eakin, a former head of the non-partisan Congressional Budget Office, predicts the HIT will cost the average family $5,000 over the course of the next decade."
-ac
With tax season now behind us, accountants are planning for 2014 and crunching the Health Insurance Tax (H.I.T.) projections. They're not liking what they're seeing and are advising business owners accordingly.
Story: HIT stands in way of small business job growth - The Hill's Congress Blog
"Since 88 percent of small businesses and the self-employed purchase their health insurance through the fully-insured market, this health insurance tax, or HIT, will be borne overwhelmingly by the small business community in the form of higher premiums. In fact, a study by Douglas Holtz-Eakin, a former head of the non-partisan Congressional Budget Office, predicts the HIT will cost the average family $5,000 over the course of the next decade."
-ac
Average people can easily afford an extra $500/year. They won't even notice it missing, it's like the angels share out of a wine cask.
Anyone here good enough with numbers to figure out what the "total cost" of healthcare will be next year for an average income family? Premium+new taxes? If you ask me, if my tax dollars go towards healthcare, I consider that part of the healthcare cost. (Just like how property tax is a cost of owning a home).
Anyone here good enough with numbers to figure out what the "total cost" of healthcare will be next year for an average income family? Premium+new taxes? If you ask me, if my tax dollars go towards healthcare, I consider that part of the healthcare cost. (Just like how property tax is a cost of owning a home).
- 8,448
You're right Ray, but there's a cumulative effect. The H.I.T. is just one of 20 new, or increased taxes attributable to the Affordable Care Act (aka ObamaCare).
Here's a list of them:
Americans for Tax Reform : Full List of Obamacare Tax Hikes
An additional $500 per year will not cause average family much pain, but the economic burden brought to the family and the country by the overall package will be substantial and cause some to reach their breaking point.
-ac
Here's a list of them:
Americans for Tax Reform : Full List of Obamacare Tax Hikes
An additional $500 per year will not cause average family much pain, but the economic burden brought to the family and the country by the overall package will be substantial and cause some to reach their breaking point.
-ac
