Obamacare Premiums Not High Enough? Don’t Worry; the Health Insurance Tax is Coming Next Year

Forgotten about this?

Obamacare, which went into a death spiral almost as soon as it was implemented, fights to stay alive each year with higher and higher premiums.

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Well, come 2018, as things stand right now, in addition to however much premiums are due to increase simply on the basis of the failing mechanism, they will go higher still. This is thanks to the Obamacare health insurance tax (HIT) that’s always been lurking, but never (yet) actually instituted.

The health insurance tax has always been a component of the Affordable Care Act, but one that politicians have managed to keep at bay during the first years of the law.

HIT represents a direct tax on premiums, and would, as usual, be another government levy that smacks small businesses and middle-class families squarely between the eyes. As if that’s not enough, the tax will also make life tougher for those seniors on Medicare Advantage plans, as well as those Americans dependent on Medicaid.

Numbers-crunching by The Heritage Foundation estimates that insurance premiums will rise another two to three percent next year on the basis of the tax alone. According to the Congressional Budget Office, HIT will cost taxpayers $12.3 billion in 2018, and over $145 billion during the next decade.

Additionally, Grover Norquist, writing in April about the tax over at The Hill, shared the National Federation of Independent Business’s estimate that HIT may well cost as many as 286,000 new jobs, and as much as $33 billion in lost sales to small business, through 2023.

The information contained here is for general information purposes only. The Financial Writer blog and Bob Yetman disclaim responsibility for any liability or loss incurred as a consequence of the use or application, either directly or indirectly, of any information presented herein. Nothing contained in this article, or any other article featured at this blog, should be construed as a solicitation or recommendation to engage in any financial transaction. You should seek the advice of a qualified professional before making any changes to your personal financial profile.

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