An Obamacare tax that will dump money into the general treasury was finalized last week with little fanfare, locking in a Federal revenue stream that, at least in theory, was set in place to cover the gap in “United States health risks” that Obamacare’s regressive, market-defying structure creates.
The Health Insurance Tax was published Nov. 27, mandating a tax on insurance companies that analysts expect will lead to an additional three percent increase in the cost of already-inflated premiums for Obamacare buyers. The goal for 2014 is to hit a Federal revenue target of $8 billion ($14.3 billion by 2018), even though there’s not a set rate at which insurers themselves can anticipate being taxed.
How does that work?
“It’s an odd sort of tax,” Heritage Foundation Fellow David R. Burton told the Washington Free Beacon. “It’s not at a specific rate, but it raises a specific amount of revenue from insurers who underwrite health insurance outside of the exchanges. You basically have a set amount of money and then it’s allocated among the insurers based on the amount of health insurance premiums they actually wrote.”
In other words, the government is gonna get its money without providing insurers a strategic roadmap that affords them any knowledge of how much each company will be forced to contribute. Worse, the government’s dollar goal is fixed, even though Obamacare’s terrible enrollment rate indicates insurers may not even profit from the few policies they’re able to sell.
Those Americans who do buy an Obamacare plan won’t see the tax itemized on their statements. But they’ll be paying it. The New York Business Council has estimated the Health Insurance Tax will cost participating residents an average of $270 in increased premiums for 2014 – the “cheapest” tax year.
The Health Insurance Tax is just one of many Obamacare taxes. Here’s a long list of others, compiled by The Heritage Foundation.