Tomorrow, the Senate Finance Committee will be taking a final vote on their tax increase/government healthcare bill.
Now, we actually have an idea of what some of these tax hikes will do to health insurance premiums, thanks to a new Price Waterhouse Coopers study:
"Cadillac Plan" Excise Tax
A 40 percent tax will be imposed on health insurance plans to the extent they are more costly than $26,000 ($9850 single). This provision will raise premiums by 5 percentage points more than they otherwise would have been.
Cash-Grab Tax on Health Industry by Sector
Purely for the purpose of raising revenue, the Senate Finance plan imposes taxes on the health insurance, pharmaceutical, and medical device sectors (assessing the tax by market share). Since this will come out in the wash in the form of higher premiums, the PWC study concludes that this will increase premiums by 2.5 percentage points more than they otherwise would have been.
What does this mean for you?
Let’s say you have a family plan that costs $15,000. Putting these two tax increases into the system will increase your premiums by 7.5 percent, or $1125. If you’re a single person paying $7000 per year, your premiums will go up by $525.
These aren’t the only premium hikes in the bill, of course. For more, read the study. But just looking at the tax provisions should give you an idea of who will really be footing the tab for Obama-Baucus.