Health Insurance Tax Returns in 2018: Impact on Premiums and Business Costs
The Health Insurance Tax (HIT), initially implemented in 2014 to support funding for the Affordable Care Act, is set to return on January 1, 2018, following a one-year moratorium.
This federal tax is expected to increase health insurance premiums by approximately 3%, translating to an average additional cost of $215 annually for individuals and $500 for families of four. The tax impacts all health insurance purchasers, including individuals, employer-sponsored group plans, and seniors, thereby affecting a broad segment of the population.
In Nevada, it is projected to influence half of all residents, indicating a significant regional effect.