Health Insurance Tax Will Hit Employers In 2018—Find Out How It Could Affect You
As readers are well aware, Congress has so far failed to make any changes to the 2010 Affordable Care Act (ACA). That fact not only means that the employer mandate to purchase insurance for full-time employees is still in place, it also means that the costly Health Insurance Tax (HIT) will go into effect next year.
According to a new Oliver Wyman report, the HIT will result in higher health insurance premiums totaling $22 billion for more than 100 million Americans nationwide. Those consumers who will be paying the tax include employers who work directly with insurance brokers to purchase employee health plans and retirees who access insurance through Medicare Advantage programs.
For employers, this tax will add to rising costs and higher premiums for employees. According to the Oliver Wyman report, the HIT could raise the cost of premiums by an additional $540 for employees’ families receiving health benefits from fully-insured larger employers. Small business owners and their employees could shoulder an additional $500 for family coverage as a result of the HIT.
The report includes data outlining premium increases by state. MSCI highly recommends that its members read this study.