Legal News

Obamacare Fee of $63 for Pre-Existing Conditions
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

In the medical overhaul from President Barack Obama, a $63 fee per person to cover the cost of patients with pre-existing conditions could be passed onto you. Companies could be faced with charges of tens of millions of dollars, which will more than likely be handed down to employees of those companies. Individual and employer health plans that cover close to 190 million Americans could see the fee, according to the Associated Press.

According to the administration, the fee is temporary and will be charged for three years beginning in 2014. The fee has a goal of raising $25 billion and will begin at $63 and then decline over the three years.

  
What
Where


Chantel Sheaks is an employee benefits lawyer for Buck Consultants, a subsidiary of Xerox. She said, “Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it.”

Almost all of the money will be deposited into a fund run by the Health and Human Services Department in order to cushion the costs that are associated with uninsured people who have medical issues. The law will prevent health insurance companies from turning down sick people as of January 1, 2014.

The Obama administration said the following about the program in the regulation, which “is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The United States Treasury will receive $5 billion in order to offset the cost of employer-sponsored coverage for employees who decide to retire early.

“This kind of came out of the blue and was a surprisingly large amount,” said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee.



The government said that the fee is going to be placed on all ‘major medical’ insurance plans, which includes plans that are purchased by individuals and those provided by employers. The fee will be owed directly by large employers. The reason for this is that major companies typically pay upfront for the majority of the health care costs incurred by their employees.

The breakdown of the fees over the three years include $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. As of 2015, the fee per person should drop from $63 to $40. The fee will be completely phased out in 2017, unless the government decides it wants to extend the program in order to help reduce federal deficits.



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Corporate, Mergers and Acquisitions and Securities Associate Attorney

USA-NY-New York City

New York City office of our client seeks corporate, mergers and acquisitions and securities associat...

Apply Now

Business Litigation Attorney

USA-CA-Santa Monica

Santa Monica office of our client seeks business litigation attorney with 1-3 years of experience. T...

Apply Now

Intellectual Property Litigation / Enforcement Associate Attorney

USA-CA-San Francisco

San Francisco office of our client seeks intellectual property litigation / enforcement associate at...

Apply Now

Union-Side Labor Law and Employee Benefits Associate Attorney

USA-HI-Honolulu

Honolulu office of our client seeks union-side labor law and employee benefits associate attorney wi...

Apply Now

RELEVANT JOBS

Associate - Mid-Level - GL Group

USA-NY-Valhalla

Defense firm seeking mid-level associate for Westchester office to fill General Liability position. ...

Apply now

Mortgage Compliance Analyst

USA-MN-Minnetonka

Job Description: Rubicon Mortgage Advisors LLC, a locally-owned, boutique mortgage lender is seeki...

Apply now

Litigation Legal Assistant

USA-CA-Los Angeles

Qualifications: Candidate should have 2+ years of previous experience supporting multiple atto...

Apply now

Litigation Legal Assistant (10+ Years Experience)

USA-CA-Los Angeles

Qualifications: Candidate should have 10+ years of previous experience supporting multiple att...

Apply now

SEARCH IN ARCHIVE

To Top