Skip to comments.Health insurance tax ‘scares the daylights’ out of some small-business owners
Posted on 05/13/2013 1:45:59 PM PDT by SeekAndFind
Many small-business owners worry that a new tax on insurance providers in the health-care law will mean higher premiums for them, undermining the laws capacity to lower their health-care costs.
Starting next year, the federal government will charge a new fee on health insurance firms based on the plans they sell to individuals and companies, known as the fully insured market. Meanwhile, the provision exempts health-insurance plans that are set up and operated by businesses themselves (the self-insured market).
Revenue from the tax will help pay for the health-care overhaul, which is expected to extend coverage to millions of uninsured or underinsured Americans.
However, because most large corporations self-insure their workforce, experts warn that insurance companies will pass the costs directly to small businesses. The vast majority purchase coverage in the fully insured market.
Insurers have confirmed back to me that the tax will be passed down to consumers, and the direct impact will be staggering, Ryan Thorn, owner of a small insurance planning firm near Salt Lake City, told lawmakers during a congressional hearing Thursday. It disproportionately hits individuals and small-business owners, the people who have been hurt most by these challenging times.
During his testimony, Thorn read letters from his small-business clients about the likely impact of the new health insurance tax. One wrote that the tax scares the daylights out of us, while another warned that it would likely hasten the decision to move away from providing group coverage for our employees.
The Department of Health and Human Services reports that among private businesses that offer health insurance, three of every four firms with between 100 and 500 employees purchase coverage in the fully insured market. The number jumped to 87 percent for firms with fewer than 100 workers.
(Excerpt) Read more at washingtonpost.com ...
That neatly bypassed the Constitution which requires that taxes go into the Treasury and that no appropriation be made except that it originate in the House.
Without the 'fee' concept being left intact, there's no way ObamaKKKare can operate as planned ~ that 'tax' on insurance will go to the Treasury and it'll be a cold day in hades before a Republican House appropriates a dime of it to buy insurance.
Well, ObamaCare doesn’t scare us so much as it forces us to try to grow revenues without hiring and without using full-time employees. And it is hardly the only government intrusion in recent years that compels us to take such a path.
So we’ll manage to have high inflation AND high unemployment while running all printing presses full steam flat out. The Trifecta.
Low information types waking up?
Just wait. We are just over a half a year away when Obamacare kicks in.
Glad I'm still healthy, because its going to be the biggest cluster-frig this country has seen since the "New Deal" and the "Great Society" that two liberals pushed on us.
I'm going to load up on popcorn and rum and make a special point of laughing at the socialists who thought this to be a good deal. I may even go to a hospital or two and ask them if they voted for Obamacare while on their death beds and not getting appropriate treatment. Yes, I'm that callous. Sue me. I want those idiots who have destroyed the best health care system in the world know that they are living in pain due their stupid votes.
By mid year 2014, there will be countless complaints about costs, lines, reduced access to doctors, reduced Medical Assistant/Nurse care. Those in the care-giving industry will be going crazy to keep up with the paperwork, and many will just leave/retire.
HHS and the IRS will dictate what you need in end days and before according to the "tax". Lawsuits will be everywhere, while you don't get the operation you need.
This is the worst over-reach of the Fedgov I have seen in my 63 years. Hope I drink myself to death. Bottoms up...haha!
This is in WaPo?
“Revenue from the tax will help pay for the health-care overhaul, which is expected to extend coverage to millions of uninsured or under insured Americans. “
This is a full on welfare program that will ultimately break the backs of taxpaying citizens and businesses.
Obamacare is such an overall disaster. Republicans should constantly be hammering away at this, educating the public as to the excessive costs and reduced care.
Just got my company renewal Going up 19% on the July 1, 2013 Renewal. Not sure how we are going to come up with an additional $228,000 accept off of the backs of the employees. Wait until they see the sticker shock. We have absorbed the increases since 2008 but can’t on this one. This is a pre obamacare renewal. Next year will be worst.
The good news is that Obamacare will be in “full bloom” just in time for the 2014 midterms....
How does the existing doctor base treat millions of new patients? The unemployed have unlimited time on their hands and will go to the doctor for every sniffle just for the attention. In the waiting room they will greatly out-compete the sorry wage slaves that will pay for all this.
And so many businesses closing their doors and laying off people that it will make the Great Depression look like a walk in the park.
Why did no one but the liberals think of this? They are going to control health insurance costs by paying for health insurance with a tax on health insurance. I should use the same model at home and pay for lavish vacations that I can’t afford by writing myself checks to cover those vacations.
I am so sad for him, he is a skilled, caring physician.
from the article:
...another [small business owner] warned that it would likely hasten the decision to move away from providing group coverage for our employees.
That’s the point: 0bamacare is a step on the road to the goal — single-payer health care. 0bolshevik said so himself in a speech to SEIU, I think it was, years ago. Hannity played the speech over and over again back in 2008.
No product but selling labor that gets paid full benefits and now there will be no part time employees. My competitors pay cash under the table. I do things honestly and ethically.
"Hey, who moved my chees?"
Good for you. God will bless you for it.