Infographic: Health Insurance Tax

Wednesday, December 19th, 2012
This post was written by Melanie Matthews

The ACA imposes a new $100 billion sales tax on health insurance that will add to the cost of coverage for people purchasing coverage on their own, small employers, Medicare Advantage beneficiaries, and Medicaid managed care programs. The Congressional Budget Office (CBO) has said that this tax will be “largely passed through to consumers in the form of higher premiums.” An analysis by Oliver Wyman estimates that this tax alone “will increase premiums in the insured market on average by 1.9 percent to 2.3 percent in 2014,” and by 2023 “will increase premiums 2.8 percent to 3.7 percent.”

An updated report by Oliver Wyman, “Annual Tax on Insurers Allocated by State,” estimates the impact this tax will have on individual market consumers, employers, and Medicare Advantage beneficiaries in all 50 states, as well as the impact on state Medicaid managed care programs. AHIP has released infographics detailing the specific impact the tax will have on each of the 50 states. Health Insurance Tax

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