Starting next year, the federal government will charge a new fee on health insurance firms based on the plans they sell to individuals and companies, known as the fully insured market. Meanwhile, the provision exempts health-insurance plans that are set up and operated by businesses themselves (the self-insured market).
The Department of Health and Human Services reports that among private businesses that offer health insurance, three of every four firms with between 100 and 500 employees purchase coverage in the fully insured market. The number jumped to 87 percent for firms with fewer than 100 workers.
The concerns from small-business owners and insurance companies have prompted lawmakers to introduce bills that would repeal the health insurance tax.
Business lobbying groups from the manufacturing, construction and farming sectors have supported those efforts, citing similar concerns about the likely impact on their health insurance premiums. Washington Post
