An extra $63-per-head fee will be coming to many Americans’ health insurance bills under Obamacare in order to cushion the cost of covering people with pre-existing conditions.
The fee is hidden in regulations recently released, and will amount to tens of millions of dollars in additional healthcare fees for the largest companies. Most of that fee will be passed on to employees.
According to figures provided in the regulation, about 190 million Americans would owe the fee. Most of the money will specifically go to the Health and Human Services Department, who will use it to protect health insurance companies from the costs of covering uninsured people with medical problems. As of Jan. 1, 2014, insurance companies will be forbidden from turning away people for pre-existing conditions.
The good news is this is currently designed to be temporary. It will be assessed for three years starting in 2014, and the amount charged will decrease each year from the initial $63. It’s designed to raise $12 billion in 2014, $8 billion in 2015, and $5 billion in 2016, before going away in 2017.
Unless, of course, a revenue-hungry Congress decides to keep it around.
– Benjamin Nanamaker, InvestorPolitics Editor
The opinions contained in this column are solely those of the writer.
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