Feds propose fee on health insurers in new market

by Ricardo Alonso-Zaldivar

(AP)—Health insurance companies will have to pay to play in new health insurance markets coming under President Barack Obama's health care law.

The federal Health and Human Services department said Friday it is proposing a "user fee" amounting to 3.5 percent of premiums for health insurers who want to offer policies in the new federal exchanges coming in 2014.

Exchanges are online markets where consumers will be able to buy individual policies and see if they qualify for government subsidies. Washington will run the exchanges in states that decline to do so.

The insurance industry says the fees will add to the cost of coverage.

The new markets are designed to be self-supporting, and backers of the approach say it's more cost-effective than the current system.

0 shares

Related Stories

Recommended for you

Europe's police crack massive horsemeat trafficking ring

date 5 hours ago

Police from seven European countries detained 26 people in a crackdown on a horsemeat trafficking ring two years after a tainted meat scandal that rocked the continent, the EU's judicial agency Eurojust said Saturday.

Text messaging useful for reaching 'at-risk' teens about sex

date Apr 24, 2015

Text messaging that connects teens with sexual health educators is effective for delivering sexual health information, according to a recent study in The Edward R. Murrow College of Communication at Washington State University.The ...

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.