TALLAHASSEE — In a recent report, the National Federation of Independent Business Research Foundation says Florida may lose more than 10,000 jobs by 2022 as a result of a provision in Obamacare that taxes insurance providers.
The NFIB estimates that the tax, known as the Health Insurance Tax, will cause a reduction in Florida's employment of between 5,600 and 10,155 jobs by 2022. The report also estimates the tax will cause a reduction in sales among small businesses of least $2.3 billion a year.
The Health Insurance Tax is a provision included in Obamacare to raise revenue. It is an annual fee on U.S. health insurance providers beginning in 2014 that seeks to collect about $90 billion in revenue through 2020. However, in its report, NFIB says this tax will ultimately be passed on to consumers, many of whom are small businesses.
“This tax targets the fully insured market, where many small businesses purchase their health insurance, and will ultimately be passed on to consumers in the form of higher premiums,” the NFIB says in a statement.
Former Congressional Budget Office Director Douglas Holtz-Eakin estimates the tax will increase premiums on insurance policies purchased in the fully insured market by $5,000 over the next 10 years, and 88% of small businesses purchase their insurance in this market, the NFIB says.
To read the complete report, click here.