A few weeks ago, Patrick blogged on the Health Insurance Tax (HIT) that had been in time-out for the 2017 tax year, but has now roaring back to life:
"For 2018, the amount this tax must generate is $14.3 billion - meaning insurers must generate $22 billion of additional premiums to pay for it."
As long-time readers know, companies (insurance or otherwise) don't actually pay taxes, so this is actually a tax hike on covered individuals.
So why are you beating this lifeless equine?
Well, because Patrick also pointed out that:
"For 2018, the amount this tax must generate is $14.3 billion - meaning insurers must generate $22 billion of additional premiums to pay for it."
As long-time readers know, companies (insurance or otherwise) don't actually pay taxes, so this is actually a tax hike on covered individuals.
So why are you beating this lifeless equine?
Well, because Patrick also pointed out that:
"The tax applies to all fully insured coverage including:
- Individual On Exchange
- Individual Off Exchange
- Small Group Fully Insured - Both ACA and Pre ACA
- Large Group Fully Insured - Both ACA and Pre ACA
- Medicare Advantage
- Medicare Part D
- Medicaid Managed Care"
Unfortunately, that list was non-exhaustive; that is, it applies to other lines of coverage, as well.
My go-to carrier for non-medical (aka "ancillary") coverage is Companion Life. Non-med group plans would include short and long term disability, dental and vision, that kind of thing. As Companion alerted me by mail yesterday, these lines of coverage are also subject to the Health Insurance Issuer Fee, and it's not insignificant:
"The ACA fee for 2018 will be 3.5% of dental and/or vision premiums."
As with other carriers, Companion breaks these out on their premium notices (invoices) because they "believe this is the most transparent way to display this fee."
Agreed.
My go-to carrier for non-medical (aka "ancillary") coverage is Companion Life. Non-med group plans would include short and long term disability, dental and vision, that kind of thing. As Companion alerted me by mail yesterday, these lines of coverage are also subject to the Health Insurance Issuer Fee, and it's not insignificant:
"The ACA fee for 2018 will be 3.5% of dental and/or vision premiums."
As with other carriers, Companion breaks these out on their premium notices (invoices) because they "believe this is the most transparent way to display this fee."
Agreed.
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