A few weeks ago, Patrick blogged on the Health Insurance Tax (HIT) that had been in time-out for the 2017 tax year, but has now roaring back to life:
"For 2018, the amount this tax must generate is $14.3 billion - meaning insurers must generate $22 billion of additional premiums to pay for it."
As long-time readers know, companies (insurance or otherwise) don't actually pay taxes, so this is actually a tax hike on covered individuals.
So why are you beating this lifeless equine?
Well, because Patrick also pointed out that:
"For 2018, the amount this tax must generate is $14.3 billion - meaning insurers must generate $22 billion of additional premiums to pay for it."
As long-time readers know, companies (insurance or otherwise) don't actually pay taxes, so this is actually a tax hike on covered individuals.
So why are you beating this lifeless equine?
Well, because Patrick also pointed out that:
"The tax applies to all fully insured coverage including:
- Individual On Exchange
- Individual Off Exchange
- Small Group Fully Insured - Both ACA and Pre ACA
- Large Group Fully Insured - Both ACA and Pre ACA
- Medicare Advantage
- Medicare Part D
- Medicaid Managed Care"
Unfortunately, that list was non-exhaustive; that is, it applies to other lines of coverage, as well.
My go-to carrier for non-medical (aka "ancillary") coverage is Companion Life. Non-med group plans would include short and long term disability, dental and vision, that kind of thing. As Companion alerted me by mail yesterday, some of* these lines of coverage are also subject to the Health Insurance Issuer Fee, and it's not insignificant:
"The ACA fee for 2018 will be 3.5% of dental and/or vision premiums."
As with other carriers, Companion breaks these out on their premium notices (invoices) because they "believe this is the most transparent way to display this fee."
Agreed.
[* IB Thanks to commenter farmbellpsu for the correction]
My go-to carrier for non-medical (aka "ancillary") coverage is Companion Life. Non-med group plans would include short and long term disability, dental and vision, that kind of thing. As Companion alerted me by mail yesterday, some of* these lines of coverage are also subject to the Health Insurance Issuer Fee, and it's not insignificant:
"The ACA fee for 2018 will be 3.5% of dental and/or vision premiums."
As with other carriers, Companion breaks these out on their premium notices (invoices) because they "believe this is the most transparent way to display this fee."
Agreed.
[* IB Thanks to commenter farmbellpsu for the correction]
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