Health insurance fee looms
December 29, 2011
A new $1 fee will be charged by the federal government to your health insurance plan starting Jan. 1, the result of a largely unheralded provision of President Obama’s health care law. [SFChronicle]
The annual fee, assessed to each person carried on a policy, will be used for research to determine which drugs, medical treatment, tests and procedures work best.
The insurance fee could be considered a tax by many in this politically-charged atmosphere.
According to officials, the fee won’t be collected until next year. It doubles the following year, and then will be attached to the cost-of-living index.
Insurance industry spokespeople said they expect the fee revenues to be used to “fine-tune” health plans. The idea is to lend some credence to tests of drugs and other procedures often advertised to consumers on television.