The Unsung, But Massive Obamacare Sales Tax Increase That Is On the Way

[CuteOldGuy]

Today, America’s Health Insurance Plans (AHIP) President Karen Ignagni issued a press release in support of bipartisan legislation (H.R. 1370, S.1880) co-sponsored by Rep. Charles Boustany (R-LA) and Jim Matheson (D-UT) to repeal the Affordable Care Act’s (ACA) health insurance tax. While much of the dialogue on healthcare reform centers on the federal mandate of health coverage for all Americans—which many conservatives call the largest tax increase in U.S history—less attention is being given to the massive sales tax increase on the purchase of health insurance also implicit within the legislation that will dramatically escalate costs for employers and consumers.

In 2014, Obamacare will take effect, with many of the changes set to roll out over the next six months. The U.S Supreme Court narrowly upheld the legislation in a 5-4 ruling in June of last year, with Chief Justice John Roberts controversially justifying his affirmative decision by claiming that the federal mandate is a form of a federal tax, which the government is within its rights to enact. Indeed, there are a number of new taxes that the ACA will bring—twenty one to be exact—but the sales tax on the purchase of health insurance is by far the largest.

The Joint Committee on Taxation released a report to Committee of Ways and Means Chairman Dave Camp shortly after the Supreme Court ruling that recalculates the costs to insurers, consumers and businesses under the new plan. According to their report—which does not include updated scores for the individual mandate, the employer mandate, or certain other revenue effects—the tax increases that remain on the books will cost taxpayers more than $675 billion over the next ten years. Chief among these will be the sales tax on the purchase of health insurance, totaling $101.7 billion, and making it larger than all the other industry-specific taxes combined.

“The health insurance tax will add a financial burden on families and small businesses at a time when they can least afford it, and it should be repealed, ” says AHIP, a trade association representing health insurance industry providers, in today’s call for the repeal of the health insurance tax before it can take affect. As they report,

Starting next year the ACA imposes a new $100 billion tax on health insurance. The tax will start at $8 billion in 2014, increasing to $14.3 billion in 2018, and will continue to increase each year.

The health insurance tax is larger than the device tax and the prescription drug tax combined.

The health insurance tax will increase costs for individuals and families purchasing coverage on their own, small businesses, seniors and people with disabilities enrolled in a Medicare Advantage plan, and state Medicaid managed care plans.

The health insurance tax is far greater than the minimum penalty for those who choose not to buy health insurance—further incentivizing young, healthy people to forgo purchasing insurance until they need medical care.

President Obama views the tax revenue generated by the health insurance sales tax and the twenty one other tax hikes in the ACA as essential to fund the his expensive Obamacare reform. John C. Goodman, author of Priceless: Curing the Healthcare Crisis (Independent Institute, 2012) and President of the National Center for Policy Analysis, joins AHIP’s Ignani in his dissention of Obama’s costly healthcare tax increases, claiming they are for American families already wrought with worry amidst an economic recession.

“The ObamaCare health insurance tax hits some of the most vulnerable people in our society, including poor people in Medicaid managed care plans and seniors in Medicaid advantage plans. It is also a tax on middle-income families who were promised by this administration that taxes would never rise.”

In fact, Medicare Advantage beneficiaries will see costs rise from $16 to $20 per member per month in 2014—increasing to between $32 and $42 by 2023. The costs for Medicare Advantage coverage over the next ten years is expected to reach $3,590. Individuals on Medicaid managed care will see increase costs on an average of $1,530 per enrollee between 2014 and 2023.

The Congressional Budget Office (CBO) supports Ignagni and Goodman’s warnings, stating that the health insurance sales tax will be “largely passed through to consumers in the form of higher premiums.” Unfortunately, as Goodman predicts, “this is only one example of many middle income taxes buried in ObamaCare.” The time to repeal and replace is narrowing, with just months now separating us from another massive tax hike that Americans cannot afford.

Seriously, aren't you tired of Obama's unending lies? Good god, people, WAKE UP!

http://www.independent.org/newsroom/article.asp?id=3555

[Yssup Rider]

BULLSHIT. more hearsay from dubious sources from the prince of all ECCIE Liars.

sorry, scrotum snogger. You gotta bring something real to this table.,,,Thow this ffucking guppy back into the river"

[CuteOldGuy]

Yeah. The Congressional Budget Office is a dubious source. How you liking the corner you're in, Assup?

[flghtr65]

If a state does not want Obamacare they can opt out, like Texas and Louisiana. If you get health insurance where you work, nothing is changeing. If you have to get it on your own, your premimum is going to be higher but at least you will be covered. Under the old system if you have a pre-existing condition like diabetis, no one is going to cover you. Under the old system if you have a 5 year old child that 10 lbs over weight, the insurance company can elect not insure your child. The old system was not working for everyone, you have approximately 25 million american citizens walking around with no health insurance. At least more people will be covered and you won't be denied coverage because of a pre-existing condition. The health insurance companies are forced to take more risk, that is why the higher premium is needed. COG do you have a plan to cover 25 million more people? The republicans don't have a plan. Their plan is if you can't get health insurance where you work, then just don't sick or marry someone from Canada.

[SEE3772]

Originally Posted by Yssup Rider

BULLSHIT. more hearsay from dubious sources from the prince of all ECCIE Liars.

sorry, scrotum snogger. You gotta bring something real to this table.,,,Thow this ffucking guppy back into the river"

Hey Yssup...

as always!

[Guest123018-4]

It will be interesting to see how many states have to be bailed out by the federal gimmit when Obamacare breaks them.
I say there will be at least four by 2016.

[Guest040616]

Originally Posted by The2Dogs

I say there will be at least four by 2016.

I say double or nuthin'!

[Jewish Lawyer]

Originally Posted by CuteOldGuy

Yeah. The Congressional Budget Office is a dubious source. How you liking the corner you're in, Assup?

Nailed you again, Yssup. You are getting your butt kicked. Go Forbidden topic, CC, drink some liquor. eat some junk food (get it? "junk" - your favorite topic lately) and come back Monday refreshed and ready to have a better line or two of rebuttal. Normally you are more entertaining and quick witted.
You talking about everyone's junk is making you lose your mind.

[satexasguy]

Originally Posted by Yssup Rider

BULLSHIT. more hearsay from dubious sources from the prince of all ECCIE Liars.

sorry, scrotum snogger. You gotta bring something real to this table.,,,Thow this ffucking guppy back into the river"

Guess HEADUPHISASS missed the part where one of the liars is Jim Matheson (D-UT) .. a DEMOCRAT. Who would have guessed a democrat is a liar?

The arguments that Obamacare will cover pre-existing conditions or not drop someone is BS compared to the number of Americans that will experience more financial hardships once the taxes kick in. Then again, the liberals see no problem with everyone being treated fairly even if that means we lose the middle class.

[CJ7]

how about it ExNyer are COF and the rest of these idiots time travelers ?

[Little Stevie]

Originally Posted by CuteOldGuy

Today, America’s Health Insurance Plans (AHIP) President Karen Ignagni issued a press release in support of bipartisan legislation (H.R. 1370, S.1880) co-sponsored by Rep. Charles Boustany (R-LA) and Jim Matheson (D-UT) to repeal the Affordable Care Act’s (ACA) health insurance tax. While much of the dialogue on healthcare reform centers on the federal mandate of health coverage for all Americans—which many conservatives call the largest tax increase in U.S history—less attention is being given to the massive sales tax increase on the purchase of health insurance also implicit within the legislation that will dramatically escalate costs for employers and consumers.

In 2014, Obamacare will take effect, with many of the changes set to roll out over the next six months. The U.S Supreme Court narrowly upheld the legislation in a 5-4 ruling in June of last year, with Chief Justice John Roberts controversially justifying his affirmative decision by claiming that the federal mandate is a form of a federal tax, which the government is within its rights to enact. Indeed, there are a number of new taxes that the ACA will bring—twenty one to be exact—but the sales tax on the purchase of health insurance is by far the largest.

The Joint Committee on Taxation released a report to Committee of Ways and Means Chairman Dave Camp shortly after the Supreme Court ruling that recalculates the costs to insurers, consumers and businesses under the new plan. According to their report—which does not include updated scores for the individual mandate, the employer mandate, or certain other revenue effects—the tax increases that remain on the books will cost taxpayers more than $675 billion over the next ten years. Chief among these will be the sales tax on the purchase of health insurance, totaling $101.7 billion, and making it larger than all the other industry-specific taxes combined.

“The health insurance tax will add a financial burden on families and small businesses at a time when they can least afford it, and it should be repealed, ” says AHIP, a trade association representing health insurance industry providers, in today’s call for the repeal of the health insurance tax before it can take affect. As they report,

Starting next year the ACA imposes a new $100 billion tax on health insurance. The tax will start at $8 billion in 2014, increasing to $14.3 billion in 2018, and will continue to increase each year.

The health insurance tax is larger than the device tax and the prescription drug tax combined.

The health insurance tax will increase costs for individuals and families purchasing coverage on their own, small businesses, seniors and people with disabilities enrolled in a Medicare Advantage plan, and state Medicaid managed care plans.

The health insurance tax is far greater than the minimum penalty for those who choose not to buy health insurance—further incentivizing young, healthy people to forgo purchasing insurance until they need medical care.

President Obama views the tax revenue generated by the health insurance sales tax and the twenty one other tax hikes in the ACA as essential to fund the his expensive Obamacare reform. John C. Goodman, author of Priceless: Curing the Healthcare Crisis (Independent Institute, 2012) and President of the National Center for Policy Analysis, joins AHIP’s Ignani in his dissention of Obama’s costly healthcare tax increases, claiming they are for American families already wrought with worry amidst an economic recession.

“The ObamaCare health insurance tax hits some of the most vulnerable people in our society, including poor people in Medicaid managed care plans and seniors in Medicaid advantage plans. It is also a tax on middle-income families who were promised by this administration that taxes would never rise.”

In fact, Medicare Advantage beneficiaries will see costs rise from $16 to $20 per member per month in 2014—increasing to between $32 and $42 by 2023. The costs for Medicare Advantage coverage over the next ten years is expected to reach $3,590. Individuals on Medicaid managed care will see increase costs on an average of $1,530 per enrollee between 2014 and 2023.

The Congressional Budget Office (CBO) supports Ignagni and Goodman’s warnings, stating that the health insurance sales tax will be “largely passed through to consumers in the form of higher premiums.” Unfortunately, as Goodman predicts, “this is only one example of many middle income taxes buried in ObamaCare.” The time to repeal and replace is narrowing, with just months now separating us from another massive tax hike that Americans cannot afford.

Seriously, aren't you tired of Obama's unending lies? Good god, people, WAKE UP!

http://www.independent.org/newsroom/article.asp?id=3555

Oh where is the offended and offensive Cap'n Kangaroo when COF or other Teapublicans post articles and merely include a link to the source without "CITING" them other than with a link?

The double standard fed by stupidity and irrelevance is alive and well here in this patient-run asylum. The RAT WING has never been more wrong than they continue to be in numerous collections of insane posts over recent weeks!

Come on, Cap'n! Isn't it time for you to list some individual posts and number them? It is as if you think anybody really cares about the crap you continue to repeat.

This is yet another example of your double standard and your mental state. Ask your psychiatrist to try some different forbidden topics on you.

Maybe they'll also make you listen better in economics class.

Remember, we wouldn't have GM and Chrysler if Cap'n Kangaroo has been in charge of the joint Bush and Obama bailout that he blames totally on Obama. In addition Wall Street might have been sucked under along with many more banks.


Should the wrongdoers be prosecuted? OF COURSE! However, had we not bailed out a large portion of this economy, we would have been in a massive GLOBAL depression.

[Texas Contrarian]

Originally Posted by Little Stevie

Oh where is the offended and offensive Cap'n Kangaroo when COF or other Teapublicans post articles and merely include a link to the source without "CITING" them other than with a link?

The double standard fed by stupidity and irrelevance is alive and well here in this patient-run asylum. The RAT WING has never been more wrong than they continue to be in numerous collections of insane posts over recent weeks!

Come on, Cap'n! Isn't it time for you to list some individual posts and number them? It is as if you think anybody really cares about the crap you continue to repeat.

This is yet another example of your double standard and your mental state. Ask your psychiatrist to try some different forbidden topics on you.

Maybe they'll also make you listen better in economics class.

Remember, we wouldn't have GM and Chrysler if Cap'n Kangaroo has been in charge of the joint Bush and Obama bailout that he blames totally on Obama. In addition Wall Street might have been sucked under along with many more banks.


Should the wrongdoers be prosecuted? OF COURSE! However, had we not bailed out a large portion of this economy, we would have been in a massive GLOBAL depression.

Looks to me like he posted a link, so he clearly indicated the source. That's what YOU failed to do. Remember?

And where did I ever say that I opposed the rescue of the carmakers? (Although they arguably could have been handled in a much better fashion.) Go ahead, post a link. Show me, you ignorant fool!

Further, you are conflating two completely different issues. In the other thread, we were discussing the ARRA, not TARP and the auto company bailouts. Did you intentionally fail to note that, or are you just once again confused?

Smarting a bit from getting your ignorant, obnoxious ass handed to you in that debate in the other thread, are you?

(You don't do well in debates on economic policy, and tend to just end up looking like a first-class ignoramus. Don't you think you might do better to stick to discussing issues unrelated to economics and finance?)

[Little Stevie]

Originally Posted by CJ7

how about it ExNyer is COF and the rest of these idiots time travelers ?

They've been that way ever since Hating Kayla invited them to her bunker and fed them to expensive repackaged MRE's you can order from Alex Jones.

They've all been hauling her "Take America Back (to the days when only landowners could vote Obama would have been a slave) Ammo" for years

I just wish they would go back in time on their own and leave us here.

Oh wait, HK would be moving farther away from "The Rapture" (their only escape from the atrocities of free thinking). I guess they'll blindly prod onward hoping to bring on the end times by their actions.

[IIFFOFRDB]

Hey Stevie, I saw you and Assup made a commercial together.

[CuteOldGuy]

Originally Posted by flghtr65

If a state does not want Obamacare they can opt out, like Texas and Louisiana. If you get health insurance where you work, nothing is changeing. If you have to get it on your own, your premimum is going to be higher but at least you will be covered. Under the old system if you have a pre-existing condition like diabetis, no one is going to cover you. Under the old system if you have a 5 year old child that 10 lbs over weight, the insurance company can elect not insure your child. The old system was not working for everyone, you have approximately 25 million american citizens walking around with no health insurance. At least more people will be covered and you won't be denied coverage because of a pre-existing condition. The health insurance companies are forced to take more risk, that is why the higher premium is needed. COG do you have a plan to cover 25 million more people? The republicans don't have a plan. Their plan is if you can't get health insurance where you work, then just don't sick or marry someone from Canada.

Do you really believe that shit? Wow. It's worse than I thought.