Friday, December 22, 2017

STM takes a HIT

Our friends at Pivot Health, purveyors of Short Term Medical plans, alert us to the latest taxing information regarding these plans:

"In order to comply with section 9010 of the Affordable Care Act (ACA) insurance companies are subject to a new Health Insurance Tax, often referred to as HIT, of 3.5% that will be added to the cost of certain health insurance plans, including short term medical. 

The tax of 3.5% will be added to the Pivot Health Short Term Medical insurance premiums on policies with January 1, 2018 effective dates or later.  This would apply to clients that have started a 4 x 3 short term medical plan in 2017 or have a policy term starting in 2018.  Your client's health insurance premium will include this tax on all January 1, 2018 billing dates and beyond. 

This tax on health insurance premiums is a tax required by federal law

The good news, if one can call it such, is that these plans are relatively inexpensive, so the nominal increase should be, well, nominal.

Still, it's another ObamaTax eating up value (and your health insurance dollars).
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