2020 health insurance tax Archives

How to Negotiate With Your Insurance Agent

So, you’ve successfully got your business up and running, you got all of your finances in check, and now you’ve searched for a quote with EZ.Insure’s quote engine to find a new policy (group health or commercial). So–now what?

Well, you definitely can’t sit back and relax just yet. Now, it’s time for you to put on your Negotiator hat so you can get the best rates for your company. We’ve got a handy list here for exactly what you need to do (and why).

Be Hungry

woman meeting with insurance agent — *Like most conversation skills, this takes practice. Try talking with a friend to hone your edge.*

And we don’t mean for a burger.

Be hungry for answers and for results. When you take a call or travel for an office visit, bring a notepad or use a device to record important questions beforehand. Often times, people forget (or are reluctant to speak about) potential savings unless asked first. These questions involve things like:

Are there any discounts?
What are all the rates I qualify for?
Why should I purchase from you?

Come prepared to every meeting with a desire to better your business. If you come with a fighting attitude, the rest will fall into place. People respect you more when they see the conviction you have for your plans. It makes you look more attentive, reliable, and attractive when you arrive ready to resolve things.

Be Informed

Don’t just take everything at face value. Of course, insurance agents are the industry experts, after all, they do have to pass an intense exam before they get their license. But, don’t forget that they’re human too. Sometimes, it’s impossible to know absolutely everything.

People can overlook information as well. Do some digging on your own (nothing too deep, just enough to be aware of things like fees). This way, you’ll be aware of insurance rates and what the market says about them. You’ll also find it easier to talk about your terms if you know the lingo. Certain words like “premium” can mean different things in normal conversation.

close up of a suit for an insurance agent — *A bonus tip: dress to impress. You’ll feel better and look more confident.*

Be Open

If you’re shopping around for a policy, do just that–shop around. Don’t just take the first offer handed to you. If you look around at a bunch of different plans (an easy tool with EZ.Insure) then you’ll have a better idea of what you’re buying comparatively. Your rates aren’t concrete, so you have some wiggle room with negotiating a better price if you can cite another source.

Remember, even if you’ve found the perfect policy and you love your agent, you can check back regularly, about every six months. Check on your insurance package to see when it’s updated and make a habit of asking the above questions. Circumstances change in the insurance world regularly, and you don’t want to miss out on a surprise cost-saving option that just came up!

EZ.Insure was born to help you get to this point. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

Get Ready For The 2020 Health Insurance Tax

Insurers were given a pass in 2019 by Congress regarding their annual health insurance tax. The reason was that the government was concerned about consumers’ out-of-pocket costs. However, if the ACA’s health insurance tax resumes as planned, this ‘free pass’ might be over and insurers will face a $15.5 billion tax bill in 2020. The health insurance tax

Silhouette of a man holding another man upside down with money falling out. — *Insurers might face a $15.5 billion tax bill in 2020, meaning health insurance premium costs will go up at least 2% next year.*

was created to fund the implementation of the ACA’s marketplace exchanges. For consumers, this means that insurers will raise premiums by more than 2% if the tax is implemented by the IRS.

Health Insurance Tax Over The Years

Oliver Wyman Actuarial Consulting recently analyzed the projected impact of the health insurance tax on health insurer premiums over the next 10 years. They found that premiums are likely to increase by 2.2% in 2020.

The tax started at $8 billion in 2014, increased to $11.3 billion for 2015-2016, and had a suspension in 2017. The tax was then reinstated at $14.3 billion in 2018, and then given another suspension for the year of 2019.

Who It Applies To

A fully-insured health plan is the more traditional way to structure an employer-sponsored health plan. With a fully-insured health plan: The company pays a premium to the insurance carrier. The health insurance tax applies to all insurers offering fully-insured coverage. This goes for :

on-exchange and off-exchange individual markets
large and small group markets
insured public programs such as Medicare and Medicaid.

The Rise In Premiums

Premium increases will vary by state. However, premiums are expected to increase annually anywhere from $154 to $479. A person in the individual market can face a $196 increase. A person in the small group market can expect a $154 increase, while a family of 4 faces a $479 increase. As for families in the large group market, the increase for an individual will be about $158, while a family faces a $458 increase.

Two arrow signs in yellow. The top one says health and points right, the bottom one says illness and points left. — *The rise in premium costs might cause a lot of people to opt out of insurance, throwing off the risk pool.*

The Outcome Following The Tax

If the tax is implemented and is as high as almost $16 billion, then increased tax burdens on small employers will follow. Fully-insured small employers will face the repercussions, while private and self-insured public employers will not. Employers are not the only ones who will have to pay for the tax increase. State taxes will go up for everyone in order to cover the increased tax on Medicaid.

More importantly, many people might opt out of insurance due to the increase in premium costs. Healthier individuals opting-out will cause an imbalance in the risk pool, meaning higher premiums for the (less healthy) people who are insured.

As of now, there is no definitive answer if the tax will be implemented in 2020. Congress is considering bipartisan legislation that would suspend the tax through 2021, but it is not a guarantee. If the health insurance tax is implemented, insurance rates and premiums will be more expensive than it already is.