The Health Care Reform Provision You Haven't Heard About

Ask any employer how health care reform affects them and you'll most likely hear items such as play-or-pay or automatic enrollment, and you may even hear comparative effectiveness research fee. I bet you will not hear: health insurance provider premium tax. Makes sense, though. Providers will be responsible for paying this tax. So, why should you care about it (especially if you offer fully insured medical plans)? Here’s why:


Beginning in 2014, Section 9010 of the Patient Protection and Affordable Care Act will impose a new tax on health insurance providers. The tax is $8 billion in 2014, $11.3 billion in 2015 and 2016, $13.9 billion in 2017 and $14.3 billion in 2018. The tax will continue beyond 2018 but future amounts have not been provided yet. Many providers will be affected and each provider’s tax will depend on their net premiums written during the calendar year.


To read the entire article by Ed Bray, J.D. click here