Wednesday, March 2, 2016

Federal Government Suspends ACA Tax Paid By Insurance Carriers

By Coleen Elkins    Visit our website 24-7 Health Insurance

Costing the Federal government $13.9 million Congress made the decision to suspend the Affordable Care Act tax on health insurance companies for one year. As a result the Center For Medicare and Medicaid Services expects insurance companies to keep their premiums "in check" when they file for 2017. The tax has compelled insurers to raise premiums passing the cost on to their insureds.

Will this be enough to hold premiums or will carrier losses raise premiums higher?

Insurers blame rising premiums on prescription drug costs and ACA fees imposed on them. Harvard Pilgrim reported an operating loss of nearly $79 million for 2015 and a net loss after factoring in other income of almost $55 million. Health and Human Services said recently stated they will look into the losses reported by many insurers for 2015.

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