Healthcare Reform: New Suite of Federal Taxes and Fees

The text below the dotted line has been sent from a health insurance carrier to its broker network.  This helps explain
the spiraling health insurance cost.  I wonder how much tax revenue will be created due to PPACA????

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A new suite of taxes and fees is being assessed on health plan sponsors in 2014 based on stipulations outlined in the Affordable Care Act (ACA). This Special Broker Update is part of a series of communications about these taxes and fees and how  we will implement them.

The first fee, implemented in 2012, is the Patient-Centered Outcomes Research Institute, or PCORI, fee. Currently $0.16 for each covered member and each dependent, this fee will increase to $0.18 for each in 2014. We will continue to separately disclose this charge to fully insured groups only. Self-insured groups must pay this fee directly to the government using IRS Form 720.

Beginning January 2014, other federal fees will be imposed. We expect them to be in the following ranges:

• Reinsurance fee, approximately $5.25 per member per month
• Market share fee, between 2 percent and 3 percent of the monthly premium

Reinsurance Fee
Medical Mutual will assess and collect the reinsurance fee across all medical lines of business for all fully insured plans and self-funded groups; excluded coverage includes stop loss, dental, vision and Medicare Supplement.

Market Share Fee
Medical Mutual will assess the market share fee on all fully insured lines of business, including dental and vision, with the exception of Medicare Supplement policies. Stop-loss applicability is to be determined.