ACA's insurance tax will increase premiums 2.6% in 2018, UnitedHealth-commissioned study finds

Health insurance premiums could rise by 2.6 percent in 2018 and up to 2.7 percent in subsequent years with the reintroduction of the ACA's health insurance tax, according to an Oliver Wyman analysis.

While Congress established a one-year moratorium on section 9010 of the ACA — which places fees based on earned premiums on payers offering fully-insured coverage — the tax will be reinstated for 2018. Insurers expect to pay $14.3 billion under the tax next year and project higher premiums prices in 2018 and beyond as a result.

UnitedHealth commissioned Oliver Wyman, a New York City-based global consulting firm, to examine potential effects of the ACA's tax on health insurance premiums.

The report estimates under the tax, per capita premiums would rise by the following amounts in 2018:

  • $158 per individual in the nongroup market
  • $185 per single contract
  • $500 per family contract in the small group market
  • $188 per single contract
  • $540 per family contract in the large group market
  • $245 per Medicare Advantage member
  • $181 per Medicaid managed care enrollee

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Top 40 articles from the past 6 months