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Want to Reduce Health Insurance Premiums? Repeal Obamacare’s Premium Tax

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By Avik Roy
Forbes, Dec. 1, 2018

The blue ribbon for the Dumbest Tax in Obamacare goes to its tax on health insurance premiums, which the Joint Committee on Taxation estimates as raising $161 billion in revenue between 2019 and 2028. The problem is this: Health insurers pass along the cost of the tax in the form of higher premiums for consumers. According to estimates developed by consultants at Oliver Wyman, for every dollar Washington raises in taxes, premiums go up by around $1.27. There is a perfect opportunity for Republicans to repeal a tax that would result in lower premiums for hundreds of millions of Americans and reduced federal spending to boot. State governments would benefit, too, as the premium tax raises their costs for administering Medicaid managed-care plans. Read More…