The 4 ‘Not So Hidden’ Costs of Health Care Reform
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Comparative Effectiveness Research Fee -or- Patient-Centered Outcomes Research Insitute Fee Health Insurance Industry Fee Transitional Reinsurance Fee Medicare Payroll and Investment Income Tax In year one, the fee is $1 per participant per year moving to $2 in year two and indexed thereafter, based on a per capita amount of National Health Expenditures. Health plans are allowed to pay this fee on behalf of their fully insured customers, but self-insured plans are required to remit payment directly. Beginning in 2014, most plans will load this fee into the insured plan premiums. Health plans estimate the fee to be about 2% to 2.5% in year one, increasing to 3% to 4% in future years. Health plans are liable for the payment of this fee. : According the HHS final rules, the transitional reinsurance fee is $63 per year ($5.25 per month) per participant. Self-funded emp- loyers and health plans are responsible for paying this fee. The Medicare payroll tax applies to individuals making more than $200,000 annually or a couple making more than $250,000 annually. The payroll tax is 0.9% on employee earnings over the threshold amounts. There is no increased tax liability to employers So, How Do You Navigate the Uncharted Health Care Reform Waters? Visit SpringGroup.com to find out! 1 2 3 4 www.SpringGroup.com twitter.com/SpringsInsight linkedin.com/company/spring-consulting-group-llc © 2013 Spring Consulting Group, LLC. All rights reserved. 4 Not So Hidden Costs of Health Care Reform There are several taxes and fees designed into the Affordable Care Act (ACA) that will impact employer costs in significant ways. Recent regulations on a couple of these taxes/fees provide enlightening clarification. Here are a few of the more prominent ones... Employer Consideration: Have you thought about the various ways you can count your employees to calculate this per head fee? Employer Consideration: How will your health insurance carrier(s) handle this fee? Employer Consideration: Do your 2014 working rates/premiums include this fee? How much will your rates increase? Employer Consideration: Is your payroll vendor withholding the correct amount for high-income earners?
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Transcript of The 4 ‘Not So Hidden’ Costs of Health Care Reform
Comparative E�ectiveness Research Fee -or-Patient-Centered Outcomes Research Insitute Fee
Health Insurance Industry Fee
Transitional Reinsurance Fee
Medicare Payroll and Investment Income Tax
In year one, the fee is $1 per participant per year moving to $2 in year two and indexed thereafter, based on a per capita amount of National Health Expenditures. Health plans are allowed to pay this fee on behalf of their fully insured customers, but self-insured plans are required to remit payment directly.
Beginning in 2014, most plans will load this fee into the insured plan premiums. Health plans estimate the fee to be about 2% to 2.5% in year one, increasing to 3% to 4% in future years. Health plans are liable for the payment of this fee.
:
According the HHS �nal rules, the transitional reinsurance fee is $63 per year ($5.25 per month) per participant. Self-funded emp-loyers and health plans are responsible for paying this fee.
The Medicare payroll tax applies to individuals making more than $200,000 annually or a couple making more than $250,000 annually. The payroll tax is 0.9% on employee earnings over the threshold amounts. There is no increased tax liability to employers
So, How Do You Navigate the Uncharted Health Care Reform Waters? Visit SpringGroup.com to �nd out!
1
2
3
4
www.SpringGroup.comtwitter.com/SpringsInsightlinkedin.com/company/spring-consulting-group-llc
© 2013 Spring Consulting Group, LLC. All rights reserved.
4 Not So Hidden Costs of Health Care Reform
There are several taxes and fees designed into the A�ordable Care Act (ACA) that will impact employer costs in signi�cant ways. Recent regulations on a couple of these taxes/fees provide enlightening clari�cation.
Here are a few of the more prominent ones...
Employer Consideration: Have you thought about the various ways you can count your employees to calculate this per head fee?
Employer Consideration: How will your health insurance carrier(s) handle this fee?
Employer Consideration: Do your 2014 working rates/premiums include this fee? How much will your rates increase?
Employer Consideration: Is your payroll vendor withholding the correct amount for high-income earners?
