Davesurance, for all your pundit needs
Friday, Nov 22, 2019 - Posted by Rich Miller
* The Center Square in February…
Of all the new tax programs Pritzker is using to balance his budget, Fitch noted that “the most significant” one is the nearly $400 million from a new assessment fee levied on managed care organizations, or MCOs.
Pritzker called it an “insurance tax” in his budget address last week. His administration has projected it will bring in $390 million.
Davesurance.com insurance broker David Castillo said consumers can expect to pay more if the tax is implemented.
* The Center Square in May…
Earlier this year, credit rating agency Fitch said the proposed insurance tax is “the most significant” recurring revenue stream proposed by Gov. J.B. Pritzker, which could bring in $400 million. Pritzker’s administration earlier this year said it would bring in $390 million.
Davesurance.com insurance broker Dave Castillo said consumers can expect to pay more if such a tax passes, but that money will be matched dollar for dollar by the federal government.
“So I think it might be a reliable source of revenue,” Castillo said. “I don’t think it’s enough to cause major discontent in the marketplace.”
* The Center Square in July…
However, questions about how the tax on managed care organizations will work remain. MCOs are organizations that handle both taxpayer-funded Medicaid and traditional insurance claims. Lawmakers approved a tiered tax on MCOs beginning in 2020 as part of the budget that was passed with bipartisan support in the final days of the legislative session last month. That revenue would then be matched by federal funding as a way to pay the state’s Medicaid bills.
Davesurance.com insurance broker Dave Castillo said it’s like using the same tax dollar twice.
* The Center Square in late July…
Asked Tuesday if the Medicaid buy-in plan in one expansion he’s eyeing, the governor said: “that’s one area to do it, yeah.”
Davesurance.com insurance broker Dave Castillo said although he doesn’t know the details of the possible plan, he sees some problems, including putting more stress on an already stressed Medicaid system.
* The Center Square in October…
When asked this summer if the Medicaid buy-in plan is one expansion he’s eyeing, the governor said: “That’s one area to do it, yeah.”
Davesurance.com insurance broker Dave Castillo said although he doesn’t know the details of the possible plan, he sees some problems, including putting more stress on an already stressed Medicaid system.
* The Center Square in early November…
Davesurance.com insurance broker Dave Castillo said a proposal could come up during the 2020 election cycle as some presidential candidates have proposed Medicaid-for-all programs. Castillo said a state-specific Medicaid buy-in program could have unintended consequences, such as specialist rationing or higher costs for other insurance plans.
* The Center Square yesterday…
Davesurance.com insurance broker Dave Castillo said there’s no question the high cost of insulin has hurt many with diabetes. But capping the price could have some unintended consequences.
- Linus - Friday, Nov 22, 19 @ 11:07 am:
They’re on commission, right?
- twowaystreet - Friday, Nov 22, 19 @ 11:09 am:
Davesurance.com insurance broker Dave Castillo said although he doesn’t know the details of Rich’s Capitol Fax post, it will raise your taxes and create uncertainty in the market place.
- Lester Holt’s Mustache - Friday, Nov 22, 19 @ 11:12 am:
Man it’s too bad that there isn’t some state agency, perhaps a department of insurance, that they could get actual insurance information from instead of having to turn to a random like the guy from “davesurance.com”. Pritzker should look into that right away
- Ducky LaMoore - Friday, Nov 22, 19 @ 11:14 am:
“could have some unintended consequences.”
I’ll keep that quote on file, as it applies to absolutely every single government action ever.
- West Side the Best Side - Friday, Nov 22, 19 @ 11:14 am:
Dave’s not here, man.
- Honeybear - Friday, Nov 22, 19 @ 11:18 am:
Daveinsurance,for all your perfidy needs.
- Enviro - Friday, Nov 22, 19 @ 11:20 am:
==unintended consequences==
…such as lower profits for Dave
- Perrid - Friday, Nov 22, 19 @ 11:20 am:
Talking about the MCO assessment specifically, here’s the tax rates:
“(1) Tier 1: $60.20 per member month.
(2) Tier 2: $1.20 per member month.
(3) Tier 3: $2.40 per member month.
(1) Tier 1 includes the first 4,195,000 member months in a Medicaid managed care organization for the base year;
(ii) Tier 2 includes member months over 4,195,000 in a Medicaid managed care organization during the base year; and
(iv) Tier 3 includes member months during the base year in a managed care organization that is not a Medicaid managed care organization.”
So private insurance is Tier 3, or $2.40 per member month. If you have a family of four enrolled for a year, and the tax is passed on, you will pay $115 more for you entire family for the year.
The point of the tax is to charge the feds for Medicaid money, Tiers 1 and 2, but not even IL was brazen enough to try to not charge private something, so they tacked this little bit of nothing on.
- David Castillo - Friday, Nov 22, 19 @ 11:24 am:
Thanks for the shoutout Rich!
- Just Me 2 - Friday, Nov 22, 19 @ 11:27 am:
I thought liberals wanted to create affordable healthcare, and now they’re taxing it?
As I said on this blog before and have been ridiculed, I would have bought into JB’s tax increases if he had at least tried to cut spending. He didn’t even try, he went straight to the taxpayer.
- Rich Miller - Friday, Nov 22, 19 @ 11:49 am:
===I would have bought into JB’s tax increases if he had===
lol
Totally believable.
- Shark Sandwich - Friday, Nov 22, 19 @ 12:03 pm:
Can’t blame them for going back to the same well. For instance, Royko had Slats Grobnik as one of his go to’s.
- Lester Holt’s Mustache - Friday, Nov 22, 19 @ 12:35 pm:
== I would have bought into JB’s tax increases if he had at least tried to cut spending.==
Odd, we don’t remember you being so skeptical when it was Bruce Rauner who didn’t even try to cut spending and went straight to the taxpayers credit card. You must have been a huge fan of Pat Quinn
- Grandson of Man - Friday, Nov 22, 19 @ 12:35 pm:
The courts are threatening the ACA again. What Pritzker does is in the national context. A narrative in 2020 should be about that threat and who backs it. That ought to be interesting in the Chicago suburbs and collar counties, after 2018. There are powerful images of Trump and Republicans in the Rose Garden, celebrating the US House voting to get rid of the ACA. Those pictures speak many words.
Pritzker accomplished much and got stuff out of the way early, so he has more time to focus on health insurance. Should be big next year.
- Name Withheld - Friday, Nov 22, 19 @ 12:35 pm:
Possible question of the day: Since we now have Davesurance - what’s your new fake pundit company/brokerage?
- Name Withheld - Friday, Nov 22, 19 @ 12:45 pm:
Davesurance - when Afflack won’t return your calls.
- Michelle Flaherty - Friday, Nov 22, 19 @ 12:59 pm:
Davesurance when you need to create a little mayhem, like me.