Health Law Tax On Insurers Being Passed On To State Taxpayers

The Associated Press reports on how insurers are not only passing that levy onto customers but also onto states through costs associated with the Medicaid managed care plans. In addition, Reuters details a recent decision by a U.S. district court judge on retiree health plans that is being viewed as a victory for employers.

The Associated Press: Inside Washington: Health Law Tax Passed Along To States

The Health Insurance Providers Fee was aimed at insurance companies. The thinking went: Because insurers would gain a windfall of customers, they ought to help pay for the expansion of coverage. Insurers say they have raised prices for individuals and small businesses to cover the new tax. As it turns out, they are raising their prices to state Medicaid programs, too. The federal government issued guidance in October requiring states to build the tax into what they pay for-profit Medicaid health plans that serve low-income people. The first year's tax was due to the IRS in September, and state governments are now settling up with insurance companies. (5/18)

Reuters: Grandfathered Retiree Health Plans Can Set Limits, Judge Rules

Retiree-only healthcare plans "grandfathered in" from before the passage of the Affordable Care Act can still impose lifetime coverage limits, a U.S. judge has ruled, dismissing a lawsuit by the widow of a former United Parcel Service of America Inc employee who faces a medical bill of more than $578,000. (Pierson, 5/15)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.

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