In addition to the increased premium to cover mandated benefits and the already present Michigan Claims tax, the following taxes will be built into the cost of health insurance starting January 2014 in order to reduce the cost of the, "Affordable Care Act". • Comparative Effectiveness Fee – Annual fee that funds health research and outcomes of various medical treatments. This fee ends in 2019. • Federal Insurance Premium Tax – Annual tax based on previous years’ premiums. It’s expected to raise $8 billion in 2014 with that amount increasing in subsequent years. This tax is permanent with no end date. • Reinsurance Fee – Annual fee that funds insurers who incur high claim costs for individual plans on- and off-Marketplace. This fee ends in 2016. • Marketplace Fee – Monthly fee intended to make the Health Insurance Marketplace self-supporting by Jan. 1, 2015. This fee is permanent with no end date. • Risk Adjustment Fee – Annual fee that will pay for the administrative expense of running the federal risk adjustment program. This fee is permanent with no end date.
Posted on: Sat, 22 Jun 2013 23:09:10 +0000
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