On The Reinsurance Tax

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"On The Reinsurance Tax"

9:21 am

On The Reinsurance Tax

A little bit more on how the “reinsurance tax” part of the Senate deal would work: The Transitional Reinsurance Program was established as part of Obamacare to help spread the inherent risk that comes from accepting everyone (including people with pre-existing conditions) onto insurance plans. It works by taxing all insurers — and, yes, that cost is passed down to the people, to the tune of about $63 per person — and then taking that revenue and reimbursing the individual insurance plans that take on the sicker patients during the first two years (2014-2016) of the new law. The Senate deal would delay the intake of money, but not the payments out.

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