Well, the "user fee" is a masquerade--it's an annual tax--that will be included in everyone's healthcare premium...hidden somewhere in the details found in all of the "fine print." This is tax policy and any moron knows that all of the "Blah...blah...blah" is still bee-ess meant to put the screws to the consumer, whether it's stated fast, mee-dee-ummmm, or very s---l---o---w---lee.
According to the health and economics expert at the American Action Forum, Robert Book, Obamacare imposes this particular "in the fine print" tax on health insurance companies. It's is not set at a fixed percent/policy, but is a fixed amount assessed on the entire health insurance industry. The tax will be allocated to individual insurance companies based upon each company's market share (as measured by total premiums).
The omniscient brainiacs who designed Obamacare thought for-profit insurance companies would be making money from increased enrollment due to Obamacare. Therefore, those brainiacs judged, those evil insurance companies should pay more in taxes to the federal government due to all of that excess profit.
- For 2014, it's $8B more.
- In 2015 and 2016, it's $11.3B more.
- In 2018, it's $14.3 billion more.
- In 2019 and beyond, it's even more...based on a formula found somewhere in the Obamacare statute's fine print.
So, what? Why should the average Joe Schlub care (aka, read this post by The Motley Monk)?
Well, here's what: Although employer-sponsored self-insured health plans are exempt, employer-sponsored insurance purchased from an insurance company is not. Thus, the tax cannot be deducted from an insurance company's federal income taxes. So, insurers will catergorize this tax as "profit" and will therefore pay additional taxes on it. For most for-profit insurers, that's an additional 35% federal income tax on that "annual fee."
And here's what's more: Insurance companies will transfer this tax to consumers. So, simply become of this tax, premiums for individuals in 2014 will increase by $60 to $160 per person, rising in 2018 to $100 to $300 for the average Joe Schlub. For family coverage, the increase in 2018 will reach $476.
Furthermore, Obamacare applies this tax not only to individuals who purchase healthcare insurance, but also to those who use Medicare Advantage and Medicaid managed care. That means senior citizens on fixed incomes will also see their taxes increase.
And, if that's not enough, here's what's even more: These higher premiums will lead some consumers to forgo insurance...which is what Obamacare was all about in the first place.
And guess who's going to be on the hook for that bill?
Righto: Joe Schlub.
Those omnscient brianiacs who dreamed up Obamacare are really all-knowing and smart...about how to screw middle class taxpayers. Aren't they?
Let the discussion begin...
To read Robert Book's analysis, click on the following link:
"Impact of the Health Insurance 'Annual Fee' Tax."