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Top 3 Healthcare Reform Changes Insurers Want Now

Jacqueline Fellows, for HealthLeaders Media, November 7, 2012

1.Repeal the health insurance premium tax.
AHIP has been railing against this tax, which begins in 2014 and is assessed against health insurance providers to help pay for PPACA. The Congressional Budget Office estimates insurers will end up paying $14 billion in taxes by 2018.

Other studies show that cost getting get passed on to consumers by way of increased premiums. AHIP President Karen Ignagni, in testimony to Congress, said the premium tax would also hit Medicare Advantage enrollees hard.

She cited an Oliver Wyman study commissioned by AHIP. "Medicare Advantage plans will pay $220 per member in 2014 and $450 per member in 2023 as a result of this tax, for a total tax burden of $3,590 per member over ten years. For Medicare Part D plans, the tax will increase premiums by an estimated $9 in 2014 and $20 in 2023, for a total increase of $161 over 10 years."

The rate of increase on premiums for everyone else such as families and individuals ranges from 2.8% to 10% by 2016. There is currently a U.S. House bill with more than 200 co-sponsors supporting the repeal of the tax, though it got little play this past session and won't likely get looked at again until the new Congress is sworn in next year.

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