The ObamaCARE Health Insurance tax was quietly finalized this past week during the Thanksgiving Holiday. The ObamaCARE Health Insurance Tax will cost nearly $60 billion over the next five years and raise health care premiums by 3 percent.
Free Beacon:
The final rule, published on Nov. 27, imposes a fee beginning in 2014 for health insurers with premium revenues over $25 million per year. The annual tax is levied for “United States health risks,” and is hidden from consumers since it is directly assessed on health insurance companies.
David R. Burton, a senior fellow in economic policy at the Heritage Foundation, said the tax will disproportionally impact small businesses.
“Most large corporations self-insure,” Burton told the Washington Free Beacon. “They may or may not have stop-loss insurance. Medium-sized businesses will self-insure but then have what’s called stop-loss insurance so that if their claims exceed a certain amount the insurance company will compensate them. The largest corporations are self-insured, period.”
“In contrast, small companies actually buy health insurance and it’s only the actual health insurance that is subject to the tax, self-insured plans are not,” he said.