Obamacare’s Health Insurance Tax (HIT) Takes Effect in 2014

From The Tribune-Review Newspaper, December 9, 2013

While Americans napped after feasting on turkey with all the trimmings, the Obama administration further obscured a new, intentionally hidden ObamaCare tax — which will cost health insurers nearly $60 billion over the next five years — by finalizing it during the long Thanksgiving holiday weekend.

Known as the Health Insurance Tax (HIT), it takes effect in 2014. The HIT — how apropos — “is hidden from consumers since it is directly assessed on health insurance companies” whose premium revenues exceed $25 million annually, The Washington Free Beacon reports.

David Burton, a Heritage Foundation senior fellow in economic policy, says larger businesses’ self-insured health plans aren’t subject to this new tax but small businesses will take the biggest HIT hit — because they buy health coverage from insurers that will pass along the additional cost. The American Action Forum projects a 3-percent premium hike over 10 years.

Family premiums also will rise, by about $5,000 over the next decade. And true to ObamaCare’s top-down, central-planning nature, insurers’ HIT hit will be determined not by a specific tax rate but by mandatory annual HIT revenue targets — which start at $8 billion for 2014, rise to $14.3 billion for 2018, then increase according to premium-revenue growth.

“It’s just one more way they’re raising the cost of employing people,” Mr. Burton says. And it’s one more reason why ObamaCare is disastrous for not just health care, but the economy, too.

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