REAL FEES OR PASS THROUGH FEES TO YOU AND ME
So what do micro economists say about fees and taxes that are part of the pending insurance re-regulation (calling it 'healthcare reform' is an insult)? Do those fees just get passed on, in the form of higher premiums? JCT analysis (pdf).
What about the largest, the excise tax on high-value plans?
JCT says it is being assessed at the insurer level. The client, the company, demands these 'Cadillac plans', but the tax-cost is put on the insurer. Doesn't that seem odd? Doesn't the buyer usually pay the excise tax, collected, often, at the point of sale?
How is the insurer best supposed to work that cost into their pricing?
One conjecture is that, rather than show spiraling executive compensation costs, the companies will request that the insurers just charge an extra dollar or two on everyone's premium payment...or more.
Saturday, December 19, 2009
Fee Revenue, other things being equal
