Small Businesses in Florida Are HIT by Another Tax
October 7, 2013 Leave a comment
Fellow Floridians. Here’s some info on the Health Insurance Tax (HIT) and how it will affect “taxpayers.” When I say taxpayers, I mean middle income people, earning a decent wage, including small businesses, to boot.
Someone has to pay for Obamacare, the future king of entitlements. Big business and insurers aren’t going to suffer. They’re going to pass through. Any tax burden is going to be on to us, the consumer. So who’s going to pay for Obamacare? One way or another, there’s going to getcha….getcha, getcha, getcha… I feel a song coming on!
How does the impact of the Health Insurance Tax (HIT) as part of the Affordable Care Act, affect small businesses and consumers? HIT will be applied to almost all health insurance policies in Florida beginning in January 2014.
According to the NFIB, a provision in the Affordable Care Act (ACA) creates a premium tax on all health insurance policies beginning in 2014 called the Health Insurance Tax, or HIT Tax. This tax will exceed $130 billion nationally in assessments in the first 10 years. It is collected by health insurance companies, but paid entirely by consumers in the fully insured marketplace, where nearly all small-business owners, employees and their families purchase their coverage. This will result in higher insurance costs for nearly all Floridians.
The tax rate is not yet set for 2014 – it is expected to be announced by HHS on or near October 1st. It will be adjusted annually to meet a specific revenue schedule. Experts predict the actual tax rate will be between 2% and 2.5% of the premium. NFIB estimates that the HIT Tax will collect $114-157 million in Florida in 2014.
This HIT Tax is in addition to the tax that the state of Florida already assesses on health insurance premiums, the state premium tax, which is set at of 1.75% and has been in place in Florida for decades.
The HIT Tax will impact all health insurance policies, except large group self-insured policies. The HIT Tax will also be levied on Medicare Advantage and Medicaid Managed Care policies. It is a 100% pass through from insurers to consumers. Most group health insurance premiums in Florida are paid by both the employer and the employee.
This tax will hit both families and small businesses directly.