Indirect Fees
The Health Care Reform Law includes three fees that could indirectly raise health plan costs for plan sponsors:
- Prescription Drug Manufacturer Fee
Beginning January 1, 2011, brand name prescription drug manufacturers must pay an annual fee based on their prescription drug sales. Costs are likely to be passed on to plan sponsors in the form of increased brand name prescription drug costs. - Medical Device Fee
Beginning January 1, 2012, medical device manufacturers, producers, or importers must pay an excise tax equal to 2.3% of the sale price on the sale of certain medical devices. Costs are likely to be passed on to plan sponsors in the form of increased medical device costs. - Health Insurer Fee
Beginning January 1, 2014, health insurance companies must pay an annual fee based on the amount of premiums they receive. Costs are likely to be passed on to plan sponsors in the form of increased premiums.
-
Additional Resources
-
Employer responsibilities and choices
What do you do with your health plan now?
-
Cost management strategies
Explore your health plan cost drivers and possible solutions to help you save
-
American Fidelity Assurance Company does not provide tax or legal advice.
ESB-856(0111)
