Additional Obamacare Tax to Drive Healthcare Premiums Even Higher

Oct 16, 2017

Under Obamacare, the insurance premiums that health insurers collect will be subject to a fee which the IRS considers a tax. Companies generally pass along those taxes and costs to consumers. In 2017, Congress stopped the collection of this tax for one year. The moratorium saved taxpayers $13.9 billion. But in 2018 the collection of the tax is expected to resume, adding more financial misery to taxpayers. The tax will be added to the premiums that people have to pay and drive up the price of premiums by 2.7 percent in 2018. In 2018, the tax is expected to take $22 billion out of taxpayer’s pockets. Over ten years, taxpayers will pay a projected $270 billion. Individuals in the non-group market could see an increase of $165 a year and families in the group market could see premiums rise by $523. As the cost of premiums continue to rise, more people are expected to drop out of the market and increasing the number of uninsured.