Surprise: New insurance fee in health overhaul law

By Ricardo Alonso-zaldivar

Associated Press

Published: Monday, Dec. 10 2012 12:46 p.m. MST

Summary

Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.

The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.

The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.

It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.

«Prev
Page:
1
2

Featured Comments

See all 11 comments »

jsf

Centerville, UT

and there you have it, a new tax on the middle class, average household of $252.00 per year. Thank you Obama care. Then the percent hike on your policy for 2013, another tax on the middle class. And they are just going to keep on coming.

1:39 p.m. Dec. 10, 2012
Top comment

Fitz

Murray, UT

Hang on everyone. This is just one of many more surprises yet to come. With Obamacare being over 2,000 pages long, there are lots of these types of surprises yet to come. And there are more surprises, like the taxes that will hit businesses, yet More..

1:52 p.m. Dec. 10, 2012
Top comment

lost in DC

West Jordan, UT

I thought BO said Obamacare would REDUCE the cost of healthcare.

Another lie from the Chicago cabal.

businesses will start doing what some owners of Olive Garden restaurants said they will do - move all their employees to part More..

4:29 p.m. Dec. 10, 2012
Top comment

Comments