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    Return of ACA tax comes with increase in premiums

    Authored by Bukaty Companies on November 8, 2017

    A one-year moratorium on the ACA Health Insurance Tax (HIT) will expire at the end of the year, and fully insured health insurance premiums will rise as insurers scramble to recoup costs. Under the ACA, all health insurers are required to pay an annual fee roughly proportionate to their fully insured market share. The tax increase was designed to help fund the federal and state Marketplaces. 

    Congress approved a one-year moratorium on the tax in 2017 as part of an effort to provide premium relief. With that respite now set to expire, insurers are facing a whopping $14.3 billion fee. As a result, premiums are likely to increase by as much as 3.5% in 2018 and between 2.5 and 2.7% over the following years, translating to an average increase of $2,276 per person and $6,675 per family over the next ten years.


    It is important to remember while this tax applies to all insurers offering fully insured coverage, it does not apply to self-insured public and private employers.

    To learn how you will be affected, call our ACA compliance team at 913-345-0440.

    Blog Category: Health Care Reform