An op-ed in the Houston Chronicle opines that “claims of improved affordability [in the health reform law] will turn out to be false.”
A big contributor to the lack of affordability? The health insurance tax, which will “total…$8 billion in 2014, rising to $14.3 billion by 2018, at which point the tax is put on auto-pilot, indexed to premium growth.” The op-ed acknowledges that the tax will be largely passed on to employers and consumers, costing “up to 250,000 jobs over the next eight years as businesses try to cope with the added cost of insuring their employees, according to a study by the National Federation of Independent Business.”
The op-ed also notes the findings of a study by Oliver Wyman on the impact of the tax, which found that for individuals, premiums would increase “about $2,800 over the next 10 years. For families, it will be an extra $5,000.”
The tax will also impact Medicare Advantage and Part D prescription drug plans by about $34 billion, increasing the per beneficiary cost of coverage by more than $3,500 over 10 years.
How will the health insurance tax affect your state? Find out here.