Health Insurance Excise Tax

The Affordable Care Act includes a new excise tax on health insurance beginning in 2014. The tax is designed to generate $8 billion in 2014 and ramp up to $14 billion by 2018. Small employers and individuals without access to employer coverage will primarily be the people paying the excise tax. The Joint Committee on Taxation estimates that this tax will add an additional $350 to $450 annually to family premiums in 2016

BCBSA believes Congress that should eliminate this new health insurance excise tax as it will add hundreds of dollars to family premiums each year. The impact is greatest on those individuals, small employers and rural consumers who choose broad choice PPOs - the most popular product.