A multibillion-dollar tax that President Obama's health care law imposes on the insurance industry will be passed onto consumers, according to a new study by American Action Forum, costing individuals and families hundreds of dollars annually starting this year.
As one way of financing the $2 trillion cost of expanding insurance coverage, Obamacare imposes a tax on the health insurance industry, which is assessed to each insurer based on their share of annual premiums collected by the industry.
But according to the study by Robert Book of the center-right policy group American Action Forum, "insurers will have to pass most of this tax along to policyholders in the form of higher premiums, or possibly higher average out-of-pocket costs or reduced benefits."
The report estimates that in 2014, individuals with employer sponsored insurance would have to pay $77 extra as a result of the tax and those with family coverage through their employers would have to pay an extra $266. By 2018, that will increase to $139 for individuals and $476 for those with family coverage.
Overall, the fees are projected to raise $8 billion in 2014 and a total of $58.8 billion through 2018.
The full study can be read here.
This story was first published at 8:00 a.m.