Aug 9, 2017

How the health insurance tax will impact 2018 premiums

AP file photo

A new study from Oliver Wyman, paid for by UnitedHealth Group, looks at how much the Affordable Care Act's health insurance tax will cost enrollees in 2018 and beyond. Insurers have long lobbied for the tax to be repealed, resulting in a one-year delay passed by Congress at the end of 2015.

How the estimated 2.6 percent premium increase in 2018 translates into dollars, per market:

  • $158 per person in the individual market
  • $185 per individual and $500 per family in the small employer market
  • $188 per individual and $540 per family in the large employer market
  • $245 per Medicare Advantage enrollee
  • $181 per Medicaid managed care enrollee

What we're watching: Premium increases are politically sensitive. When insurers say this tax just gets passed onto enrollees in the form of higher premiums, it gives them political leverage — potentially enough for another delay (or if insurers are very lucky, a repeal) of the tax attached to something Congress passes later this year.

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