The 5 Obamacare Taxes That Doubled My Insurance Rate

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When I'm not busy promoting liberty via Internet rants (and now podcasts!), I have a freelance career. Being a freelancer and not tied to any single employer, I purchase  my own health insurance. Now I am relatively young - in my early 30's - and in good health. I rarely visit the doctor for anything, and only purchase health insurance for - *gasp* - actual emergencies. I pay a (relatively) lower monthly rate with a high deductible and pay out of pocket for most expenses, while insuring that if I break my leg or get cancer or something of that nature I don't go bankrupt.Today I got a letter from my insurance provider stating what I've known for some time: that my current plan was not ACA (Affordable Care Act, the legal name for "Obamacare") compliant, and that I would have to sign up for a new plan. The new plan is nearly double  the cost of my current insurance. The best part? My new, more expensive ("Affordable?") plan actually offers less coverage than I had before, with higher deductibles and out-of-pocket maximums.Just like our airline tickets are now littered with line after line of taxes and government "fees" (more taxes!), so does my health insurance now have a user-friendly tax breakdown! Here's a breakdown of the five additional taxes that are adding to the cost of my plan, as described by my health insurance provider:

  1. Patient-Centered Outcomes Research Institute (PCORI) Tax - This tax supports research that determines if medical treatments are effective and appropriate. In 2014, this tax will be $2 per member per year.
  2. The Health Insurer Tax - This annual tax is designed to offset a portion of the expenses related to providing assistance to qualified individuals to help pay for health coverage. In 2014, this tax is expected to be approximately 2.3% of your rate.
  3. The Transitional ReInsurance Tax - This tax will be used to fund transitional reinsurance programs in each state to help cover costs of the highest-risk individuals in the individual market. In 2014, this tax is estimated to be $5.25 per member per month ($63/year).
  4. The Exchange Tax - This tax covers the ongoing operating costs of California's state exchange, Covered California, in 2014. In 2014, this tax will be $13.95 per member per month.
  5. The Risk Adjustment User Tax - This annual tax supports the U.S. Department of Health & Huma Services (HHS) Risk Adjustment Program. This program covers the costs of high-risk individuals. In 2014, this tax will be $0.96 per member per year.

A note is also included that the provider will collect these funds to give to the federal government. Surely the cost of this calculation and collection raises the provider's cost as well, along with many other factors related to Obamacare, and federal involvement in health care in general.This seems to confirm that my best course of action may be to purchase no health insurance at all, pay the smaller penalty to the IRS, and purchase health insurance if and only if I get a serious injury or health condition. After all, I "can't be denied" coverage!Make sense? Of course not. But that's what government does. The unintended consequences of government regulation force people to make what would otherwise seem like illogical decisions to combat it's equally illogical laws.The solution, of course, is a free market in health care. Not a complicated fascist web of government subsidies, taxes, protectionist schemes, and coerced customer base.Receive access to ALL of our EXCLUSIVE bonus audio content – including “Conspiracy Corner”, “Degenerate Gamblers” and the “League of Liberty Podcast” by joining the Lions of Liberty Pride and supporting us on Patreon!

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