The ACA is a tax that just keeps biting. Every insurance policy in the United States now includes payment of a new, invisible tax. It doesn't matter whether you buy your insurance, receive health benefits from your employer, or are on Medicare. This tax is for you!
How HIT works
Under the ACA, every insurer that offers fully-insured health insurance must pay an annual fee - the so-called Health Insurance Tax (HIT.) The "fee" is based on premiums and is roughly proportional to their market share. It was designed to help fund the costs of running the Federal and State Insurance Exchanges as well as providing subsidies. Insurers are allowed to include this in their non-administrative costs which means that it is passed directly on to consumers in the form of increased premiums.
What HIT means
According to analysis by Oliver Wyman Health, the HIT has the following impact:
$165 increase per person in the individual market
$193 increase per person and $523 increase per family in the small group market
$196 increase per person and $563 increase per family contract in the large group market
$255 increase per Medicare Advantage member (including Special Needs Plans and Employer Group Waiver Plans)
$195 increase per Medicaid managed care enrollee
CARE in America fixes healthcare ... plain & simple
CARE in America helps businesses and their employees eliminate the majority of this tax. Contact us to learn more.
