The answer: from those receiving the subsidies in the first place. Thus the business community got what it wanted, and the burdens and complexity were heaped on the uninsured.
It’s too bad the AP didn’t report any of this, since the tale of the clawback may have foretold future government give-backs and alterations to the health reform law. The law also calls for tax on insurance companies intended to raise some $87 billion over 10 years to help finance the subsidies. Businesses, especially small ones, despise the tax believing that it will simply be passed on to them in the form of higher premiums. Their trade association, the National Association of Independent Business, has teamed up with the insurers in a campaign to get Congress to repeal the levy; that campaign has also used the press to pass along its message. Given the insurance industry’s success in wresting more money from the government for Medicare Advantage plans, it’s possible the tax will disappear just like the reporting requirements did.
If that happens, it’s fair to ask: who will pay for the subsidies? With people signing up for coverage in six months, this unfolding story is one to watch.
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