“The Health Insurance Tax (HIT) on fully-insured premium markets imposed by Obamacare could raise $87 billion over the next ten years and also cost between 125,000 and 249,000 jobs by 2021, according to a study.”
“Even as the new health care law adds millions of insured customers to the paying pool, medical device manufacturers say a tax on their product could cost them billions… But the manufacturers say the tax will force money away from research, send jobs overseas and stop them from expanding in the U.S.”
“According to CBO, 11-12 million uninsured Americans will be subject to the mandate; the agency expects more than half of them to pay the fine instead of buying insurance. But there’s something that the CBO didn’t say: as more people pay the ‘tax penalty’ instead of buying insurance, premiums for everyone else will go up, potentially triggering a death spiral in the private insurance market.”
“Nearly six million Americans, most of them middle-income workers, will face a tax penalty under President Obama’s health overhaul for not getting insurance, Congressional analysts said Wednesday. That estimate, from analysts at the nonpartisan Congressional Budget Office, is significantly higher than their previous projection, calculated in 2010 shortly after the law passed.”
“The moves are meant to prepare Welch Allyn to address the new ‘onerous’ U.S. Medical Device Tax scheduled to take effect next year under the Affordable Care Act, the company said… The company can’t just pass on the tax increase to its customers — clinics, doctors’ offices and hospitals — who are already being pushed to cut costs, Chadderdon said.
The tax is 2.3 percent of a medical device maker’s U.S. revenue, but takes a bigger bite out of profits, Chief Executive Steve Meyer said Monday.”
“The U.S. health care law’s process for providing insurance subsidies to middle-income families will produce a ‘burdensome, costly and frustrating quagmire,’ a former Internal Revenue Service commissioner told a congressional committee.”
“The primary problem with ACA’s mandate or tax is not the label we give it, but why it is needed at all. Its existence suggests that our central planners in Washington knew that they had failed to design an insurance product that people actually would want to buy. When you have to force people to buy something as obviously valuable as protection against becoming uninsurable or paying astronomical premiums, it means you have some serious design flaws in your product that still need to be corrected.”
“Beginning in 2014, Section 9010 of the Patient Protection and Affordable Care Act will impose a new tax on health insurance providers… All of that said, starting in 2014 your fully insured health insurance premium renewal could have an extra 2% (or more) added on to it, representing the pass-through of this tax to you.”
“Despite promises that the president’s health reforms would lower health care costs, “Obamacare” is saddled with new taxes, mandates and regulations that will increase the cost of care for families and job creators.”
“An Indiana-based medical equipment manufacturer says it’s scrapping plans to open five new plants in the coming years because of a looming tax tied to President Obama’s health care overhaul law.
Cook Medical claims the tax on medical devices, set to take effect next year, will cost the company roughly $20 million a year, cutting into money that would otherwise go toward expanding into new facilities over the next five years.”