ObamaCare Clusterufck: The December 2013 Price goes up in Jan. 2014
As if the mandate were not enough of an oppression on tens of millions of Americans who are barely scraping by 6 years into this endless "recession," the ObamaCare "additional taxes" are about to get added to the monthly premium bills of hapless consumer citizens who bought policies in the last few months.
But one insurance company, Blue Cross Blue Shield of Alabama, laid bare the taxes on its bills with a separate line item for “Affordable Care Act Fees and Taxes.”
The new taxes on one customer’s bill added up to $23.14 a month, or $277.68 annually, according to Kaiser Health News. It boosted the monthly premium from $322.26 to $345.40 for that individual.
The new taxes and fees include a 2 percent levy on every health plan, which is expected to net about $8 billion for the government in 2014 and increase to $14.3 billion in 2018.
There’s also a $2 fee per policy that goes into a new medical-research trust fund called the Patient Centered Outcomes Research Institute.
Insurers pay a 3.5 percent user fee to sell medical plans on the HealthCare.gov Web site.
This gives new meaning to the expression of "Nickel and Diming people to death." And also to Bait + Switch -- Jane Doe bought a policy in December thinking the premiums were, say, $300 per month. Come January, she'll find out that her premium went up between the time she signed up for the policy (at a price certain) and the date on which that policy becomes effective. Wow.
What other product can you think of where you sign up for a year plan at a ceratin monthly rate only to have that rate change (increase) on your first bill. I can only think of credit cards, which can change your terms unilaterally, at will, any time. Readers?
NOTE. These taxes and levies and fees are imposed by the ACA on INSURANCE COMPANIES, but it apparently has gone without saying and par for the course, that every penny of those taxes and levies and fees imposed "on the insurance companies" are being entirely passed through (cost-shifted) to the policy holders. Why couldn't the ACA just come out and say that every purchaser of an ObamaCare policy will be paying -- in addition to the premiums advertised on the various websites' promotional materials -- charges, fees and levies "to be determined by your insurance company when you get your first bill."
Not a whole lot of cost transparency to the consumer there. Not at all.