Supporters of the tax reason that it's a sensible means of raising revenue to support the health system that the same insurers are using to generate profits. (Photo: Shutterstock)
A fee on health plans that Congress voted last year to suspend will cost the insurance industry $15.5 billion if it goes back into effect next year, according to an IRS analysis.
The Health Insurance Provider's Fee was included in the Affordable Care Act to fund setting up state and federal ACA marketplaces. The fee is based on an insurer's share of the market, which is calculated based on each insurer's net premiums for the year.
Congress has had a fraught relationship with the tax, suspending it in 2017, allowing it to go back into effect in 2018 and then suspending it again in 2019. Unless Congress acts, it will go into effect again next year.
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