ObamaCare Health Insurance Fee Will Increase Family Premium $240 in 2014

Robert Book of the American Action Forum has a new analysis of ObamaCare’s annual fee on health insurance:

  • The amount of the “annual fee” tax on health insurers is $8 billion for 2014, $11.3 billion in 2015 and 2016, $13.9 billion in 2017, and $14.3 billion in 2018. Amounts for years after 2018 are set by a statutory formula.
  • The tax will result in a premium increase of $60 to $160 per person in 2014, rising to $100-$300 by 2018, for the average insured individual — and over $260 per family in 2014, rising to over $450 in 2018, for families with employer-sponsored, fully-insured coverage.
  • The tax applies to individually purchased insurance (through exchanges or otherwise), fully insured employer-sponsored plans, Medicare Advantage, and Medicaid managed care.

Comments (16)

Trackback URL | Comments RSS Feed

  1. Perry says:

    Wait, what happened to decreasing a family’s premium by $2500 per year?

  2. Butler says:

    This probably is one expected goal of ACA. The government wants to get more money through this bill.

  3. Gabriel P says:

    I thought it was called the “affordable care act”. It looks like the affordable portion is dramatically misleading, more expensive than it used to be. The act part of the name is also questionable. After so many delays and amendments to the law it seems as if the act is a child’s game, with ever changing rules benefit the rule changer. And the care part, well that was absent since before the law changed so no complain there.

    • Jenny T says:

      A whole bunch of lies is a much more suiting name to this reform.

      • Peter A says:

        … Sponsored by the “most transparent administration in history”.

        • Edward R says:

          Another lie to add up to the tally. I don’t know how someone can make a statement like that when the government has acted behind curtains and lied to the American population as bluntly as this administration has done.

  4. John Fembup says:

    The Medicare Advantage premium for my spouse and me increased by $80 per month for 2014 – all because of the Obamacare “fee.”

    I’m trying to resist the notion that we’re “lucky” it’s only $80.

  5. Giancarlo S says:

    This new tax is going to be felt by American people. A significant increase like that will most certainly affect the household budget. It will decrease disposable income and thus spending. The tax will harm American economy, and will slow its recovery.

    • Ken W says:

      No wonder the administration is delaying the implementation of the mandates. They know that if these tax hikes are felt throughout the nation, the democrats will face a tough road to win the elections.

  6. Perry says:

    This law was poorly thought out, and poorly implemented. It’s going to be bad for doctors, patients, the healthcare field and the economy. The insurance companies will do fine, however. And the politicians will get excellent care.

  7. Bob Hertz says:

    Insurance of all kinds has featured premium taxes for many years. My own field was life insurance, which had premium taxes ever since the 1980’s.

    Besides, the premium increases due to mandated benefits and guaranteed issue will be $240 or more PER MONTH not per year for many individuals and families.

    The premium tax seems like small potatoes.