Temporary Fee on Big Business Funds Obamacare
Written by Editor   
Wednesday, May 28, 2014 10:44 AM

The government collects $63 from large self-insured employers and insurance companies for every covered life under a plan, which includes each employee and each dependent it insures.  And it's a burden employers aren't carrying alone. Mercer also found that most large employers are requiring workers to pay part of the ACA fees.

That money goes into a fund for health insurance companies, that reimburses them for some extra costs involved in providing coverage to high-risk individuals on the Obamacare exchanges.  You might think of it as a subsidy from big business for making insurance coverage available to everyone without regard to pre-existing conditions.

The fee is reduced next year and is set to gradually disappear over the next 3 years.