Obamacare Tax Merry-Go-Round


Get a load of how Obamacare health-insurance premium taxes work. According to Medicaid Health Plans of America: “This situation results in the federal government taxing itself and taxing state governments to fund the higher Medicaid managed care payments required to fund the ACA health insurer fee.”

It look me a few times to get my head around that. What it means is that Obamacare levies a premium tax on private health plans – including those to contract to provide Medicaid coverage. So, the federal and state governments, which are Medicaid’s payers, pay those taxes. USA Today has summarized what the taxes will cost in some large states:

  • Florida anticipates the tax will cost $100 million, with the state picking up $40 million and the federal government, $60 million.
  • Texas estimates the tax at $220 million, with the state paying $90 million and the federal government, $130 million.
  • Tennessee anticipates it will owe $160 million, with the state paying $50 million and the federal government, $110 million.
  • California budgeted $88 million, with the state paying $40 million and the federal government, $48 million.
  • Georgia estimates the tax on its plans at $90 million, with the state paying $29 million and the federal government, $61 million.
  • Pennsylvania predicts the tax will cost $139 million, with the state paying $64 million and the federal government, $75 million.
  • Louisiana estimates the tax will cost $27 million, with the state paying $10 million and the federal government, $17 million.

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For the pivotal alternative to Obamacare, please see the Independent Institute’s widely acclaimed book: Priceless: Curing the Healthcare Crisis, by John C. Goodman.

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