Friday, May 16, 2014

The Boston Globe's Robert Weisman summarizes the effect of the tax on insurers imposed by the Accountable Care Act.  Excerpts:

Insurance companies, like drug and medical device makers, were required to help fund the Affordable Care Act through annual taxes that must be booked in the first quarter for accounting purposes. But the insurers said they will try to recoup much of the added cost through the year by boosting premiums for employers and individuals buying insurance.

The taxes and fees tied to implementation of the Affordable Care Act were assessed for the first time in the most recent quarter. They will increase in each of the next four years before leveling off in 2018. Nationally, the cost to insurers has been estimated at $8 billion this year.

Access, lower cost, and choice.  Right.  I used to think it was two out of three.  Now, it appears to be only one out of the three.

We're gradually getting to understand how the Congressional Budget Office was just able to "score" the Accountable Care Act as positive for the federal budget: "That legislation includes many other provisions that, on net, will reduce budget deficits . . . over the next 10 years and in the subsequent decade." (Original version here in 2010 also did so.)


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