29 Oct 2013

New Taxes on your Small Group Health Plan – Coming in 2014

29 Oct 2013

The Affordable Care Act created a number of new fees and taxes, to help subsidize tax credits to individuals and families, and to help stabilize the new guarantee-issue individual market.

There are four new taxes that will hit small group health plans in 2014. Most insurance companies have simply built these new taxes into their 2014 rates and they will be realized by small employers upon their 2014 renewal.

However, Blue Shield of CA has elected to break out two of the taxes, totaling 3.6% of monthly premiums, and add them as new line items beginning with your January 2014 invoice – even if your Blue Shield renewal date is later in the year.

Explanation of the Health Insurer Tax and Transitional Reinsurance Tax

Sample Blue Shield letter to small group clients, to be mailed later this week.

 

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