So much for “affordable” health care.
Yet another Affordable Care Act tax is on tap for September, starting at $8 billion a year and increasing to more than $14 billion annually by 2018. In short, every health plan with more than $25 million dollars of premiums has to pay a portion of that giant tax.
That means that even Americans who are not covered by Obamacare, but instead have private insurance plans, will still pay this tax through premium increases and other fees.
By next Monday, August 31st—or possibly before—the federal government will tell each plan what portion of the health insurance tax they will be required to pay before September 30th. And this tax, and therefore the increases to the insured, will happen every year. A tax on our insurers is a tax on all of us, since Americans will see their premiums increase significantly, possibly by a double-digit percentage. In fact, one actuary estimates that individual premiums may increase $500 this year, while family premiums could be $700 higher.
Health plans providing coverage for Medicare, Medicaid and Obamacare will be charged with the tax, which will, in turn, increase the cost of Medicaid for the state, as well as Medicare for the federal government and recipients. However, the tax cannot be directly imposed on government entities.
The Affordable Care Act was described as a law to ease the financial burden on Americans and improve their coverage and care. But neither has happened. Our care has been compromised and all of us—even those who didn’t choose Obamacare coverage—are paying the price. This is not affordable health care.
The Daily Caller reports that over the next decade, consumers will pay more than $145 billion for the tax. Language for the tax was buried in Section 9010 of the Affordable Care Act as a way to raise future funds to pay for Obamacare. Now, some lawmakers are calling for repeal of Section 9010 of the law. Among them is Sen. John Barrasso (R-WY), who told the Daily Caller that the tax “is another example of how the president’s health care law was designed so the most painful parts of the law kick in years later.”
“Ironically,” The Daily Caller continued, “the elderly and the poor—those who were supposed to benefit most from Obamacare—will be adversely affected by the new tax, as will financially hard-pressed state governments.”
The IRS has a web page to explain the fee and the process: www.irs.gov/Businesses/Corporations/Affordable-Care-Act-Provision-9010.
Twila Brase is president and co-founder of Citizens’ Council for Health Freedom (CCHF, www.cchfreedom.org), a Minnesota-based national organization dedicated to preserving patient-centered health care and protecting patient and privacy rights. Celebrating its 20th year, CCHF exists to protect health care choices and patient privacy. Brase, a registered nurse, has been called one of the “100 Most Powerful People in Health Care” and one of “Minnesota’s 100 Most Influential Health Care Leaders.”