Prepare for even higher premiums as #Obamacare tax set to hit insurers

As if premiums weren’t too high already thanks to the so-called “Affordable Care Act.” Via Fox News:

New Year’s Day marks the start of coverage under ObamaCare for millions of people — but it also marks the start of a massive tax increase which could further inflate premiums.

Beginning Wednesday, the Affordable Care Act imposes an annual fee on health insurers. The fee is projected to bring in $8 billion next year and roughly $100 billion over the next decade, making it one of the biggest under the law.

The health insurance industry has been howling about the “tax” for years, and is trying to rally support for a bill in Congress that would repeal it. The bill, sponsored by Rep. Charles Boustany, R-La., has 229 co-sponsors — which represents a majority of members in the House.

But the White House will fight any effort to repeal it, and for now the measure is in effect.

On Tuesday, America’s Health Insurance Plans President Karen Ignagni warned that the fee will end up hitting consumers in the form of higher premiums.

“Taxing health insurance makes it more expensive and that undermines the goals of health care reform,” she said.

The health care overhaul impacts what people pay for health insurance on the individual market in a host of ways.

For some, premiums will rise, but they’ll be eligible for subsidies to offset the cost, ultimately bringing down their health care tab. Others, who make too much to qualify for subsidies, will see their health care costs rise. The impact will vary depending on the state, the level of coverage sought and other factors.

Happy New Year!