Continuing our review of the impact of the ACA healthcare law, it has recently been announced that there will be an additional tax placed on all policies beginning in January 2014. Health & Human Services has released new directives that include a $63 annual per person fee to help offset the cost to insurance companies for providing coverage to those who were previously considered uninsurable.
The tax will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Many employers already offering coverage to their workers don't see why they should have to contribute since it mainly helps the individual insurance market. This tax puts the large companies on the hook for tens of millions of dollars and adds significant additional cost to mid-size and small employers.
Beyond the impact of the cost to agents on a personal basis, this fee may also push more employers to either not offer health coverage through their companies or to reduce the number of employees that are eligible for coverage by making them "part-time".
The fee will reduce each year and will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. It will phase out completely in 2017 — unless Congress decides to extend it.
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Humana Announces Commission Changes
Humana has announced their new 2013 Producer Partnership Plan. Effective January 1, 2013 there will be new base commissions on plans sold or renewed. Beginning in the third quarter of 2013 there will be new production requirements to qualify for Tier 2 and Tier 3 commission levels. Group Dental, Vision, Life and Disability base commissions will remain the same as in 2012.