The Obama administration has proposed rules implementing a health insurance premium tax to help fund the healthcare reform law, even as health insurers and Republicans continued a push to kill it.
The health insurance tax (PDF) is expected to collect $8 billion in 2014 and rise to $14.3 billion by 2018, according to the proposed rule.
The proposed rule also specified entities that are exempt from the tax, including self-insured employers and any government entities. The tax excludes long-term-care insurance and Medicare supplemental health insurance plans, as well
Insurers that are subject to the tax responded to the proposed rule by reiterating long-standing objections that the tax will just increase premiums.
“Imposing a new sales tax on health insurance will add a financial burden on families and employers at a time when they can least afford it,” Karen Ignagni, president and CEO of America's Health Insurance Plans, said in a news release.