New Health Care Tax Will Raise Premiums For Everyone

A new report by the actuarial firm Millman Inc. says that the new tax on health insurers' premium revenues will be passed on the consumers, and will cause problems with state Medicaid programs. The premium tax was intended to help pay for coverage of the 32 million uninsured Americans, and will be paid by all insurance companies, but under federal law the state and federal governments have to pay the tab for their Medicaid programs.

So let's see, there's a new tax on health insurance that we will have to pay because the insurance companies will pass the tax on to us in increased premiums, AND, the tax that is paid on the Medicaid program expenses (which we already pay through our income taxes) will also have to be paid by the state and federal government revenues (aka our taxes). Hmm....Sounds like we get hit with the full cost of the "health care tax". Who's bright idea was that! Oh yeah...our government. Brilliant!

The insurance industry trade group (AHIP) said that they believe consumers should be exempt from this tax that increases health care coverage costs. I agree.

Stay tuned for more.

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