New Taxes

Starting in 2014, there are new charges on health insurance companies and on individual taxpayers to fund the ACA (PPACA or ObamaCare).

The first one is known as HIT – the health insurance tax.  This is an assessment on some health insurance companies based on their market share. Health insurers oppose the tax because it will lead to increased premiums, which is what health care reform wants to avoid.  A study by the consulting firm Oliver Wyman confirmed the tax will increase premiums by more than $2,800 per person and $6,800 per family over 10 years.

The second tax is on individuals making more than $200,000 and couples making more than $250,000.  They will pay a 3.8% tax on dividends and capital gains when they file their 2013 returns this year.  This income group also saw a 0.9% Medicare wage tax increase in 2013.

For the next three years, insurers will pay $63 per health insurance recipient; this is known as a reinsurance fee.  The $12 billion collected will be used to spread out risk so insurance companies that end up taking on the sick will be protected.

The penalty for being uninsured begins this year.  Individuals won’t have to pay it until they file their 2014 returns, the penalty this year is $95 or 1% of income, whichever is greater.  Next year, the penalty rises to $325 or 2% of income.

The last fee is on insurance companies that sell their health plans on; they will pay a monthly user fee of 3.5% of the premiums for health plans sold on the website.

This information was taken from an email I received from Humana.

Speak Your Mind