Forget ‘Keep Your Plan’ And The Website, Obamacare Taxes Are Worse
Robert W. Wood
As with many tax laws–and on many fundamental levels, the Affordable Care Act is a tax law–determining exactly where the tax burden falls isn’t always clear. One of the new taxes funds the Patient-Centered Outcomes Research Institute (PCORI). (I wish this institute included “affordable” for it makes a better acronym.) This 2% levy on health plans is expected to collect a cool $8?billion this year alone.
By 2018, annual receipts from the little 2% climb to $14.3 billion. Over a decade, it reaps over $100 billion. Here comes the zinger. Self-insured employers (public companies and 4 of every 5 employers with over 500 employees) don’t have to pay it, according to IRS rules. Oh, but the health plans pay it, right?