Cigna Executive: Health Care Reform Tax On Insurers Will Mean Higher Prices For Customers
A Cigna Corp. executive said Thursday that taxes on the health insurance industry related to the Affordable Care Act, or federal health care reform, will be pushed onto customers in the form of higher premiums.
Cigna’s Chief Financial Officer Ralph J. Nicoletti responded to a question about the taxes during a conference call with financial analysts Thursday morning when the Bloomfield-based health insurer reported third-quarter earnings.
“If you look at the tax, just our philosophy on pricing is essentially to price underlying cost trends, which we’ve viewed as part of. So, beginning in 2013 with — for policies that overlap into 2014, we will include and reflect the industry tax in that pricing,” Nicoletti said.
The company declined to elaborate on how much the taxes might affect premiums.
An annual fee on health-insurance providers is expected to bring in $102 billion between 2013 and 2022 as part of the tax revenue to pay for federal health care reform, according to a July analysis by the Congressional Budget Office.
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