12/11/2012

Another Obama tax that people might not have known about

So you want to cover the insurance costs of people who don't have insurance?  The obvious solution is to tax insurance right?  Forcing more people off insurance will surely lower the cost of covering people who don't have insurance, right?
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 Obama's health care overhaul.  
The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.
Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.  
"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.  
Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee. 
The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.  . . .

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