Your government can 🤑
As part of the new budget not only was CHIP funding extended six years, but several taxes intended to help fund Obamacare were further delayed … certain groups didn’t like them and the big picture and big deficits were ignored as usual.
The measure brings good news for payers, as it includes a one-year delay of the health insurance tax in 2019. The tax, which is part of the ACA, was suspended last year but returned this year—which is likely one of the reasons premiums climbed for individual market plans. Suspending the tax in 2019, according to (PDF) Leerink Partners analyst Gupte, could boost insurers’ earnings by 10% to 20%.
The short-term spending bill also includes a two-year delay of two other ACA taxes: the Cadillac tax on high-cost employer-based insurance plans and the medical device tax. The former is unpopular with employers, and the latter with the medical device industry.