The latest ObamaCare levy takes effect Jan. 1.
Dec. 29, 2013 6:27 p.m. ET
ObamaCare
includes so many taxes that it's hard to keep track, but one of the
worst takes effect on Jan. 1. This beaut is a levy on health insurance
premiums that targets the small business and individual markets.
At
$8 billion in 2014 and $101 billion over the next decade, the insurance
tax is larger than ObamaCare's taxes on medical devices and
prescription drugs combined. The Internal Revenue Service classifies the
tax as a "fee" but it functions like an excise tax on premiums. The IRS
collects an annual flat amount specified by the Affordable Care Act to be allocated among the insurers according to market share.
But not all markets. IRS regulations published in November excluded "any
entity that is a self-insured employer to the extent that such employer
self-insures its employees' health risks." Since about four of five
employers with more than 500 workers and most union-negotiated health
plans are self-insured, they are spared from the tax. So is insurance on
behalf of "government entities," such as original Medicare (but not
privately run Medicare Advantage).
No comments:
Post a Comment