Health care premiums will be increasing as a result of the State Legislature approving the Governor’s proposed increases in taxes, fees and assessments on your health benefits as part of his Deficit Reduction Plan. This increase may very well come prior to your next annual renewal.
In short, as part of the Deficit Reduction Plan, the Governor has added to the State Premium tax and has imposed a new tax on certain physician services.
The insurance carriers are required to collect these taxes, fees and assessments and there will be no exceptions or extensions. The estimated overall percentage is thought to be between 1% and 5% which will be passed along to the carriers’ clients. At this point, the carriers are determining how and when they will roll this out. For more details on these taxes see my Feb 4th post.
We will monitor this situation and advise you as we get additional information