Michigan Association of Health Plans

The Impacts of the ACA’s Tax on Health Insurance in 2019 and Beyond

On October 10, Oliver Wyman, who partnered with United Health Care, released an actuarial study regarding taxes under the Affordable Care Act (ACA). The Health Insurance Tax (HIT) is imposed on fully insured Such taxes may cause all segments of the health insurance market to experience additional costs over the next 10 years if these taxes are imposed. Some highlights of the study:

For each dollar in taxes, $1.54 must be collected in premiums.

Imposition of these taxes may cause a 2.7% increase in premium in 2018 and between a 2.6%-2.8% increase year-over-over through 2027.

Michigan consumers’ premium expense may increase by more than $603,000,000 in 2018 and more than $7.7billion from 2018 to 2027.

We strongly encourage consumers to contact their congressional representatives and voice support for the repeal of the Health Insurance Tax (HIT) under the ACA!

View the report here.