A proposed 40% excise tax on “Cadillac health plans” could cost employers about $46 billion per year by 2019, and health insurers could be paying $6.1 billion in federal “annual fees” in 2019.
Senate Finance Committee Chairman Max Baucus, D-Mont., sent the bill to the Congressional Budget Office and the JCT Friday, and CBO analysts published their “score” of the bill Wednesday. The CBO analysts said implementing the bill precisely as written would lead to a total of $829 billion in new spending from 2010 to 2019 but, thanks to a variety of cost-cutting and revenue-raising provisions, would cut the federal budget deficit by $81 billion over that period.
The JCT now has provided more detailed estimates of the effects of the AHFA bill draft on some types of products and tax breaks of interest to insurers.
The JCT is a nonpartisan congressional committee that advises Congress on tax legislation.
All revenue provisions in the AHFA bill draft combined could raise about $11 billion in revenue in 2010 and about $13 billion in 2011, and that total would increase to about $104 billion in 2019, JCT analysts predict.
The provisions could raise about $381 billion from 2010 to 2019, the analysts report.