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October 16, 2017

How Will The Affordable Care Act Health Insurance Tax Affect Premiums?

Last week, the international management consulting firm Oliver Wyman released an updated study looking at how the Affordable Care Act Health Insurance Tax (HIT) will affect health care premiums.

The report, which was commissioned by UnitedHealth Group, says the HIT will increase the average health insurance premium by 2.7 percent in 2018, and between 2.6 percent and 2.8 percent in subsequent years. In 2018, this increase would equate to $165 per individual in the non-group market, $193 per single contract and $523 per family contract in the small group market, $196 per single contract and $563 per family contract in the large group market, $255 per Medicare Advantage member, and $195 per Medicaid managed care enrollee. Over the next ten years, those amounts total $2,376 per individual in the non-group market, $2,383 per single contract and $6,463 per family contract in the small group market, $2,428 per single contract and $6,969 per family contract in the large group market, $3,156 per Medicare Advantage member, and $2,559 per Medicaid managed care enrollee.

More than 156 million Americans would be affected by the tax.

It’s for these reasons that the Metals Service Center Institute opposes the HIT and has called upon Congress to repeal it. Unless Congress acts, this tax will take effect in January 2018. Click here to learn more.