Saturday, February 27, 2021
Hawai'i Free Press

Current Articles | Archives

Monday, March 3, 2014
New Obamacare Tax Will add $300 to Insurance Premiums
By NCPA @ 2:09 PM :: 2388 Views :: Health Care

The Impact of ObamaCare's "Annual Fee" Tax

NCPA March 3, 2014

ObamaCare's "annual fee" tax will be passed on to consumers in the form of higher premiums, says Robert Book, a health and economics expert at the American Action Forum.

The Affordable Care Act imposes a tax on health insurance companies that is not set at a fixed percent per policy, but is instead a fixed amount on the entire health insurance industry. The fee will then be allocated to individual companies based upon an insurance company's market share (as measured by total premiums). The text of the statute calls this tax an "annual fee," but it is really a tax. The logic behind this tax is that insurance companies will make money from increased enrollment due to ObamaCare, and therefore should pay more to the federal government.

  • For 2014, the fee is set at $8 billion. That figure rises to $11.3 billion in 2015 and 2016, reaching $14.3 billion in 2018. After that, the amount is based on a statutory formula.
  • The tax applies to individually purchased insurance as well as Medicare Advantage and Medicaid managed care. Employer-sponsored self-insured health plans are exempt, though employer-sponsored insurance purchased from an insurance company is not.
  • Notably, the tax cannot be deducted from an insurance company's federal income taxes. As such, insurers will have to include this tax as part of their profits on which they will pay an additional tax. Book notes that for most for-profit insurers, this means an additional 35 percent income tax on that annual fee tax.

Insurance companies will simply transfer this tax to consumers. Individuals will see their premiums increase due to this tax by $60 to $160 per person in 2014. That number will rise to $100 to $300 by 2018 for the average individual. For family coverage, the increase will reach $476 in 2018.

Notably, these higher premiums will lead some consumers to forgo insurance, increasing the average tax paid by those who remain insured.

Source: Robert Book, "Impact of the Health Insurance 'Annual Fee' Tax," American Action Forum, February 20, 2014.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

ALEC

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Ballotpedia Hawaii

Better Hawaii

Blaisdell Memorial Project

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

Coffee Break

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Life Alliance

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT