
Written by
Emily Kubis
Emily writes about benefits, technology, the healthcare industry and more.
Insurer fee expected to spike 2020 group premiums

ACA tax back in place for 2020
The Affordable Care Act requires insurers offering fully-insured plans to pay a “health insurance tax” based on premiums and market share. These fees help fund the ACA’s marketplace exchanges, but Congress passed a one-year hold on the tax in 2019.
The tax, also called a premium tax or health insurer provider fee, is back in place beginning in 2020, and fully-insured groups should expect to see higher premiums as a result.
Last year, an analysis by Oliver Wyman Actuarial Consulting predicted the $16 billion tax would tack on an extra 2.2 percent on renewal rates in 2020 and each subsequent year.
According to the analysis, this spike translates to a $154 increase per person and $479 increase per family contract in the small group market.Self-funded and level-funded plans provide more transparency to employers about where their benefit dollars are going, and allow the group to recognize savings associated with low-claim years.
To learn more, download “The Employer’s Guide to Self-Insuring” here.
Bernard Benefits advisors have more than a decade of experience in evaluating health plan options for groups of all sizes. Click below to request a consultation with a Bernard Benefits advisor.

Written by
Emily Kubis
Emily writes about benefits, technology, the healthcare industry and more.
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