Health Insurance Tax

Chief Financial Officer Jimmy Patronis today sent a letter to Florida’s congressional delegation urging them to address the costly and ill-designed federal Health Insurance Tax (HIT) ahead of its impending implementation. The HIT requires insurance companies offering full coverage plans to pay an annual tax to help cover the cost of the federal exchange. While Congress delayed the HIT’s 2017 implementation, without additional action, it will become effective January 1, 2018. To cover the cost of paying the HIT, insurance companies are expected to significantly raise rates.
CFO Patronis said, “Congress has delayed the 2017 HIT implementation, lowering policyholders’ premiums by three percent, and saving the health care system an estimated $13.9 billion. However, a delay is but a temporary reprieve. Without immediate Congressional action, the tax will go into effect January 1, 2018, with a $22 billion first-year fiscal impact. With a 10-year projected impact of $267 billion, Florida simply cannot afford inaction. Florida alone faces a $1.7 billion overall increase in 2018 health care premiums. Florida’s state workforce covered by the state-sponsored health plan can expect a $188 annual increase for individual coverage, and families can expect to pay an additional $518 in 2018.”
Read a copy of the CFO’s letter here.