Obamacare Fee: Why The Affordable Care Act Will Raise Your Taxes And Cost You Money
The Obamacare fee, which will raise taxes to offset the cost of covering people with preexisting conditions, will mainly affect workers. But the Obamacare fee may not be as scary as it first sounds -- the Obamacare fee will be at most $63 per year.
An estimated 190 million Americans with preexisting conditions will now be covered under Obamacare, and the money to do so will come from the new Obamacare fee. The Obamacare fee, which is only a temporary fee, will start in 2014 and last for three years. The Obamacare fee is expected to raise more than $25 billion.
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The majority of the money from the Obamacare fee is "intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," according to the Obama administration.
Word of the Obamacare fee first came in the Spring, but only now is the extent of the Obamacare fee known. The Obamacare fee will start at $63 per person and go down from there.
Chantel Sheaks, an employee benefits lawyer, said the Obamacare fee is a "sleeper issue" for large employers.
"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," she said, according to Fox News.
Many companies are upset, however, that they will now have to pay this Obamacare fee on top of providing insurance for their employees.
"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute, according to the Christian Science Monitor.
The Obamacare fee will be phased out in 2017, unless Congress votes to extend it.
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