Insurance premiums could increase by thousands of dollars because of a new tax in President Obama's healthcare law, according to a study commissioned by the insurance industry.
The healthcare law imposes several new taxes, including a tax on the insurance industry. The amount the government will collect will rise each year, and is expected to raise $100 billion over 10 years.
The health insurance tax will raise families' insurance costs by as much as $7,000 over a decade, according to a study conducted by the firm Oliver Wyman on behalf of America's Health Insurance Plans (AHIP), the insurance industry's leading trade group.
Premium increases will vary from state to state, Oliver Wyman said. But on average, the cost of a family plan sold through a large employer could cost about $7,200 more over 10 years — about $720 per year.
“With full implementation of the ACA a year away, the focus needs to be on making coverage more affordable,” AHIP President Karen Ignagni said in a statement. “Taxing health insurance will have the opposite effect by making it more expensive.”
Insurers have pressed Congress to repeal the tax, saying it's part of a series of policies, set to take effect at the same time, that will cause an dramatic spike in premiums.